UPDATE: Piper Jaffray Upgrades Zumiez to Neutral, Raises PT on Solid Execution

In a report published Thursday, Piper Jaffray analyst Stephanie S. Wissink upgraded the rating on Zumiez ZUMZ from Underweight to Neutral, and raised the price target from $21.00 to $25.00. In the report, Wissink noted, “We are upgrading ZUMZ to a Neutral rating, acknowledging the company's ability to navigate through a challenging backdrop of a maturing lifecycle and sales volatility and given investor willingness to apply a premium to growth multiple, despite secular risk. With shares having round tripped in the last five months, we are resetting our thesis, balancing our valuation justification, implying a Neutral rating is more suitable. Shares could certainly retract, but we are mindful that comparisons get easier mid-year, adding to the optics around performance. On a group average multiple of 14x, our PT moves from $21 to $25.” Zumiez closed on Wednesday at $24.90.