NEW YORK (TheStreet) -- Shares of Dillard's (DDS) - Get Report closed higher by 5.26% to $61.20 on heavy trading volume on Wednesday after Credit Suisse upgraded the stock to "outperform" from "neutral."
The firm also raised its price target to $70 from $63 on shares of the Little Rock, AR-based department store.
"We are upgrading DDS on the company's consistency in capital allocation that stretches over a decade now. At the same time, the company has focused on localization of merchandising and remains the only regional buying structure in the industry," Credit Suisse wrote in a note earlier today.
While the firm does not expect a significant improvement in reported profitability, it believes the company will continue to reduce overall debt and repurchase stock. That effectively lowers the enterprise value.
Additionally, Credit Suisse downgraded department store Macy's (M) this morning.
About 1.07 million of Dillard's shares traded today vs. its average volume of 465,796 shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on Dillard's stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.
But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DDS