Talbots (NYSE:TLB) Needs to Improve Top-line Performance Say Jefferies (NYSE:JEF)

Talbots (NYSE:TLB) has a strong need to improve their top-line performance say Jefferies (NYSE:JEF), who lowered their EPS estimates and PT on the specialty retailer.

Jefferies lowered their EPS/revenue estimates for full year 2010 and full year 2011 to $0.75/$1.23 billion and $1.00/$1.26 billion from $0.90/$1.23 billion and $1.15/$1.3 billion.

Positives on Talbots is their product line, brand, management shuffle and infrastructure improvements, according to Jefferies.

Jefferies maintains a "Buy" rating on them, citing the sole reason as valuation. Talbots closed at $8.28, down $0.53, or 6.02 percent. They lowered their price target from $18 to $17.