NEW YORK (TheStreet) -- Zulily (ZU)  stock is up 2.85% to $13.36 in midday trading Wednesday after Oppenheimer initiated coverage with an "outperform" rating and a $17 price target.

"With a near-term focus on reducing shipping times and improving the consistency of inventory availability through new fulfillment centers, we believe Zulily is well positioned-to benefit from the secular shift to online and mobile e-commerce," analysts said.

The e-commerce company's near-term focus is to drive a turnaround in late 2015 by improving the daily experience through personalization technology, adding new vendors and products, and enhancing features on the mobile app and mobile web properties. 

In addition, Zulily plans to improve the accuracy and timeliness of orders as well as expand its gross margins, the firm noted.

In the company's 2014 fourth quarter, its average order-to-ship time from U.S. fulfillment centers was 13.7 days, up from 11.5 days in 2012 and 5 days for the majority of the top-25 retailers, according to analysts, which is why it is developing a consignment model to reduce order-to-ship times.  

"We believe the company's emerging consignment model could expand margins as Zulily takes on more inventory risk in fulfillment centers," Oppenheimer said. 

Separately, TheStreet Ratings team rates ZULILY INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ZULILY INC (ZU) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, weak operating cash flow and poor profit margins."

You can view the full analysis from the report here: ZU Ratings Report

ZU data by YCharts

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