NEW YORK (TheStreet) -- Shares of Kate Spade & Co. (KATE) are gaining 0.54% to $28.17 in Thursday's early market trading after Wedbush initiated coverage with an "outperform" rating on the designer and marketer of a range of accessories and apparel, according to theflyonthewall.com.
The firm set a price target of $39.
"KATE can significantly grow its business by taking a relatively small amount of market share, while larger players are more dependent on category growth trends to move the needle," Wedbush analyst Morry Brown said.
This action comes after Kate Spade & Co. last Thursday issued its quarterly earnings report, topping earnings estimate for the first quarter.
The New York-based firm reported 3 cents per share, beating the Thomson Reuters consensus estimate of 2 cents per share. Similarly, revenue of $255 million for the quarter also topped analysts' forecast of $244.9 million.
On a year-over-year basis, the company's quarterly revenue increased 14.2%.
TheStreet Ratings team rates KATE SPADE & CO as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate KATE SPADE & CO (KATE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and premium valuation."