Joe's Jeans shares rise on growth predictions
NEW YORK (AP) — Shares of Joe's Jeans Inc. rose Wednesday on optimism about it potential for growth.
THE SPARK: B. Riley & Co. analyst Jeff Van Sinderen boosted his rating for the clothing company's stock to "Buy" and backed his price target of $2.15.
THE BIG PICTURE: Commerce, Calif.-based Joe's sells denim clothing and accessories for men, women and children through both wholesale and retail businesses.
THE ANALYSIS: Van Sinderen said Joe's should grow significantly over the next several years and in light of the recent drop in its share price, the stock has become a more attractive investment.
Van Sinderen said that while the company's wholesale business is thriving, increasing full-priced sales should boost the company's profitability for several years. He noted that Joe's plans to expand its current fleet of 31 stores to 100 locations by the end of 2017.
Joe's also stands to get a boost from the ramp up of its lower-priced clothing line for Macy's Inc., along with overseas sales growth, he said.
THE SHARES: Up 6 cents, or 4 percent, to $1.65 after peaking at $1.72. Over the past 52 weeks, the stock has traded between 80 cents and $2.04.