Friday, December 3, 2010

rue21 (NASDAQ:RUE) Doubling Store Count Over 5 Years

With the stated goal of wanting to double their store count in five years, rue21 (NASDAQ:RUE) has found a believer in Jefferies, which reiterated their "Buy" rating on the specialty apparel retailer.

Jefferies raised their EPS estimates for full year 2010 from $1.19 to $1.23 and from $1.43 to $1.50 for full year 2011. The firm increased their revenues estimates for full year 2010 $3 million to $633 million and $9 million to $764 million for full year 2011.

Pressures on costs appear to be under control as well, as the retailer uses a flexible sourcing model which could come under some strain.

rue21 closed Thursday at $29.51, falling $1.46, or 4.71 percent. Jefferies has a price target of $37 on them, increasing it from $35.

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