Shares of clothing chain Abercrombie & Fitch (ANF) - Get Report and department store chain Dillard's (DDS) - Get Report both climbed higher on Thursday after receiving respective upgrades from Wedbush Securities.
In two separate notes to clients, Wedbush Securities analyst Jen Redding on Thursday upgraded Dillard's to neutral from underperform amid what she sees as a "reasonable" valuation on the company's stock. Redding also raised her price target on the shares to $62 from $54.
The upgrade is an about-face from her take on Dillard's following the retailer's earnings release in May, when she cut her price target for the second time in a month on concern over sales momentum in a stalling economic environment.
Redding cut her target price on the stock to $55 from $65 on May 16. That followed a previous downgrade and target-price cut on April 22.
Separately, Redding also upgraded Abercrombie & Fitch to neutral from underperform, citing a "valuation reset" as well as a "positive inflection" in sales from its Hollister units in both Asia and the U.K. Redding raised her price target on Abercrombie shares to $18 from $16.
Bruce Kamich with TheStreet.com's Real Money Pro has a different take on Abercrombie, however, which TheStreet's Quant Ratings service recently downgraded to hold.
- Abercrombie Stock Is in Make-or-Break Territory After Earnings Fall
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"ANF has weakened significantly, but in the short term could bounce higher," Kamich wrote last month. However, "without a new base pattern, I would not anticipate the bounce to go very far or to last very long."
Shares of Dillard's jumped more than 6% to $64.29 on the New York Stock Exchange on Thursday, while shares of Abercrombie gained 0.91% to $17.21.