NEW YORK (TheStreet) -- Zulily (ZU) shares closed trading up 1.1% to $40.30 on Thursday after being upgraded by RBC Capital to "reasonable price" and having its price target raised to $50 from $45.

The 50% pullback on the stock was the impetus for the firm's improved outlook.

"Our biggest concern has been (Zulily's) valuation, the 50% (stock) correction over the last four months has caused us to reassess our call," analysts wrote in the note.

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