Francesca's Holdings shares rise on "Buy" upgrade
NEW YORK (AP) — Shares of Francesca's Holdings Corp., the women's accessories and clothing store chain, rose after a Jefferies analyst upgraded the company's stock rating.
THE SPARK: Jefferies analyst Randal Konik raised the company's rating to a "Buy," citing its profit margins and growth potential.
THE ANALYSIS: Konik said in a note to clients that Francesca's Holdings could "nearly triple" the number of stores it has. The retailer currently has about 900 stores around the country.
Konik also said that stock buying by executives within the company "sends a very strong signal of their confidence in the business."
Francesca's Holdings did not respond to an emailed request for comment.
SHARE ACTION: Shares of the company rose $1.21, or 4.9 percent, to $25.87 in afternoon trading Monday. Its shares are still down 30 percent after hitting a 52-week high of $37.09 in September.