Bare Escentuals upgraded to buy by Citigroup

Mon. June 16, 2008; Posted: 09:47 PM

NEW YORK, Jun 16, 2008 (Thomson Financial via COMTEX) -- BARE | Quote | Chart | News | PowerRating -- Bare Escentuals Inc. Monday was upgraded to buy from hold by Citigroup, which said bad news from the company is overly discounted in the stock which has fallen about 50% over the past 12 months.

Investors have been concerned about slowing productivity, a troubled infomercial business, the delayed launch of the Starter Kit product, insufficient management breadth, a challenging macro environment and active insider selling, the firm said. But these issues shouldn't prevent the company from meeting its target for 20% growth in revenue and earnings in 2008.

The shares are attractively valued and offer a compelling risk versus reward scenario for investors, Citigroup added.

Bare Escentuals shares rose 5.3% to $21.86. Christie Rizk cr/jw

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For full details on Bare Escentuals Inc (BARE) click here. Bare Escentuals Inc (BARE) has Short Term PowerRatings of 6. Details on Bare Escentuals Inc (BARE) Short Term PowerRatings is available at This Link.

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