|09:53 EDT||VRA||Vera Bradley rises after Jefferies ups rating to Buy|
Apparel designer and retailer Vera Bradley (VRA) is climbing after Jefferies analyst Randal Konik upgraded the stock to Buy from Hold in a note to investors earlier today. There are several reasons why investors should buy Vera Bradley's stock, Konik wrote. The company's comparative sales should continue to increase by mid single digit percentage levels in coming quarters, while the designer's margins should rise this quarter, according to the analyst. Moreover, Vera Bradley can quadruple the number of stores it owns, expand its wholesale business, and widen its footprint in underpenetrated markets, Konik contended. Finally, the retailer's stock trades at a multiple well below that of its peers, according to the analyst, who hiked his price target on the shares to $35 from $22 while maintaining a Buy rating. In early trading, Vera Bradley rose 58c, or 2.40%, to $24.72.