NEW YORK (
stock is surging on rumors that the children's apparel retailer may be putting itself up for sale.
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
, which is gaining 5.2% to $51.28.
--Written by Jeanine Poggi in New York.
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