UPDATE: Ascendiant Capital Reiterates Strong Buy Rating, Raises PT on The Wet Seal Following Q1 Results, Q2 Guidance

In a report published Wednesday, Ascendiant Capital analyst Elizabeth Pierce reiterated a Strong Buy rating on

, and raised the price target from $6.50 to $7.00. In the report, Ascendiant Capital noted, “Based on Q1 results and Q2 guidance, we believe WTSL's turnaround is well underway. Moreover, based on recent channel checks and ongoing assortment tweaks, including a fashion shift out of wovens and into higher margin knit tops, the stage is set for a strong 2H. Moreover, we expect the marketing (mobile, social media & ecommerce) initiatives to drive market share gains. Finally, although still early, we believe all of the changes taking place position WTSL to eventually reach and possibly exceed peak operating margins.” The Wet Seal closed on Tuesday at $4.50.