Zumiez Shares Rise As Wedbush Analyst Lifts Rating

NEW YORK (AP) — Solid back-to-school sales could lead Zumiez Inc. to another month of sales growth, an analyst said Friday as she upgraded the retailer's rating and boosted its price target.

"We believe Zumiez benefited from solid back-to-school selling during the Labor Day weekend and while there may be some deceleration in the latter half of the month, we believe September sales will once again demonstrate an improvement from year-to-date trends," Wedbush's Betty Chen wrote in a client note.

The company's moves to guard merchandise margins via lean inventories and favorable product costs as well as its ability to keep selling, general and administrative expenses in check are also likely to push earnings higher, she added.

Chen raised the Everett, Wash.-based retailer's rating to "Neutral" from "Underperform" and lifted its price target to $16 from $9.

Chen's views echo those of William Blair analyst Sharon Zackfia from earlier this month. Zackfia recently said in a client note that Zumiez's value-oriented message in marketing, merchandising and sales paid off during the back-to-school shopping season.

Shares of Zumiez surged $1.40, or 9 percent, to $16.73 in morning trading. The stock has traded in a range of $4.50 to $28.84 over the past year.