Getty

Shares of Tailored Brands, Inc. (TLRD) rose 4.9%, to $14.12, Tuesday after B. Riley FBR began coverage of the specialty apparel retailer with a "buy" rating and a 12-month price target of $20 per share.

"We believe TLRD has a strong position in the men's specialty retail market and has taken steps to capitalize on a fashion shift toward more customized and branded clothing within a larger fashion cycle," analyst Susan Anderson wrote. "This, coupled with TLRD's turnaround of Jos. A. Bank, has enabled the company to become a bellwether in the men's suiting and specialty retail spaces."

Anderson added that the Men's Wearhouse slowdown seen so far in the fourth quarter "appears fixable to us, and our recent store checks show that since MW has returned to its typical holiday promotion of $199 suiting, traffic and sales have improved in the stores."

Last week, the company reported third-quarter adjusted net earnings of $51.4 million compared with $36.9 million a year ago. The company reported $813 million in revenue, missing projections of $820 million.

Tailored Brands' retail segment operates about 1,477 stores under Men's Wearhouse, Men's Wearhouse and Tux, Jos. A. Bank, Moores, Joseph Abboud, and K&G. The corporate apparel segment provides corporate apparel uniforms and work wear to workforces under the Dimensions, Alexandra, Yaffy and Twin Hill brands.

The company also cut its full-year earnings guidance and said it now expects full-year earnings in the range of $2.30-$2.35 a share, down from $2.35-$2.50 a share, due to weaker-than-anticipated comparable sales in the third quarter. Tailored Brands said it also expected comparable sales for Men's Wearhouse to be flat-to-up slightly, versus previous guidance of up low-single-digits.

During a conference call with analysts last week, Executive Chairman Dinesh Lathi said that "while we are seeing some softness at Men's Wearhouse in Q4, we believe the growth strategies that have fueled four consecutive quarters of positive comps at this brand will continue to drive future growth."

More from Investing

KeyCorp Expected to Earn 47 Cents a Share

KeyCorp Expected to Earn 47 Cents a Share

Real Money Report Card: Big Week for Bank Earnings

Real Money Report Card: Big Week for Bank Earnings

CSX Tops Estimates, Sets New $5 Billion Buyback

CSX Tops Estimates, Sets New $5 Billion Buyback

8 Takeaways for Apple, Google and Others from Recent Mobile App Stats

8 Takeaways for Apple, Google and Others from Recent Mobile App Stats

It Would Be Healthy for This Market to Have Some Downside Action Now

It Would Be Healthy for This Market to Have Some Downside Action Now