Wunderlich Securities Bullish On Vera Bradley, Inc.

Analysts at Wunderlich Securities Initiated coverage on Vera Bradley, Inc. VRA with a Buy rating and price target of $27 on Wednesday.

Analysts stated, “we believe that Vera Bradley, with a new management team, aggressive growth strategy, and rapidly evolving shift in product and placement, is on track to once again regain its mantle as a lifestyle-driven growth story centered on distinctive handbag looks.”

Eric Beder outlined the logic behind the Buy rating:

Vera Bradley is a leading distributor of handbags and accessories, operating 89 full price and 20 outlet stores in the United States.

New management team brings innovative ideas and different business strategy to the company. CEO Robert Wallstrom delivers extensive retail experience and has assembled a team of consumer leaders.

Analysts expect fiscal year 2016 to bring major change. Management plans to shift product mix and the way employees interact with customers. Beder stated, “the recent expansion into leather handbag offerings and more fashion-driven items should drive even higher sales and returns for the company.”

Shares of Vera Bradley closed Tuesday at $23.27.