UPDATE: Jefferies Raising Price Target On Conn's

Jefferies & Co. is out with a research report on Conn's Inc. CONN and is raising its price target to $6 from $5.50, and it has a Hold rating on shares. In a note to clients, Jefferies & Co. writes, "We like how Conn's is managing the balance sheet, but think that investors will continue to place a low valuation on shares until top line trends improve. Preannounced Q2 sales were down 15.2% y/y, while retail gross margin improved to about 29%, vs. 25.7% LY. Conn's refinanced a high interest term loan at the end of Q2, providing a lift to EPS going forward." Shares of CONN gained 13 cents yesterday to close at $5.99.