J.Crew Proves Analysts Wrong

J.Crew(JCG Quote) is proving analysts wrong -- or, at least, one analyst in particular: Bean Murray Carret analyst Eric Beder, who upgraded the preppy apparel retailer to hold from sell today, as the company negated every one of his "sell" thesis.

Shares of J.Crew soared 21% to $24.79 in morning trading, a day after the company posted better-than-expected first quarter earnings.

"But with J.Crew trading at one of the highest multiples in the sector, we do not believe a buy rating is justified either," Beder said in a note on Friday.

During the quarter, the company earned $20.4 million, or 32 cents per share, compared with $30.5 million, or 48 cents per share, last year. Analysts expected a profit of 10 cents. ...