UPDATE: Wunderlich Upgrades Kate Spade & Company

In a note published early Wednesday morning, Wunderlich analyst, Eric Beder initiated coverage on Kate Spade & Company

with a Buy rating and a $36 price target. Beder commented, "We believe KATE has a plethora of expansion options to drive high margin, high quality growth; further, Kate Spade is one of the few lifestyle brand leaders with the ability to continue to aggressively add doors and drive productivity in a tough economy." Beder also noted the stock is trading down 30 percent from its 52-week high, which when coupled with the company's growth prospect he says provides a "compelling entry point". Looking ahead, Beder is predicting an EPS of $0.17 for the fourth quarter and $(0.11) for full fiscal-year 2014.