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Gymboree Surges on Possible Sale

Gymboree's stock is gaining on reports that the company may be up for sale.

NEW YORK (

TheStreet

) --

Gymboree's

(GYMB)

stock is surging on rumors that the children's apparel retailer may be putting itself up for sale.

The

Wall Street Journal

reported Thursday night that the company is exploring a possible sale of the company to private investors.

"Given strong cash flow generation, a healthy balance sheet, core brand recognition and growth potential, Gymboree represents a palatable potential private transaction," Susquehanna analyst Thomas Filandro wrote in a note.

Filandro upped his price target on the stock to $60 from $48.

Shares of Gymboree are soaring 18.1% to $49.05 in morning trading, and sending up shares of rival

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Children's Place

(PLCE) - Get Report

, which is gaining 5.2% to $51.28.

--Written by Jeanine Poggi in New York.

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