NEW YORK (TheStreet) -- Shares of The Wet Seal Inc (WTSL) are climbing 5.38% to $0.71 this morning after the company was upgraded to "buy" from "neutral" at B. Riley with a higher price target of $1.50 from 90 cents, despite reporting lower than expected second quarter earnings after market close yesterday.
The firm said the increase in rating reflects the potential turnaround of the company with the return of Ed Thomas as CEO.
Analysts believe this move is the best opportunity for Wet Seal to improve, and Thomas' veteran fast fashion experience and proven track record will eventually result in operational profitability.
Separately, TheStreet Ratings team rates WET SEAL INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WET SEAL INC (WTSL) a SELL. This is driven by a number of negative factors, 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 unimpressive growth in net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."
- You can view the full analysis from the report here: WTSL Ratings Report
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