UPDATE: Wunderlich Securities Upgrades Iconix Brand As Catalysts Approach

In a report published Thursday, Wunderlich Securities analyst Eric Beder upgraded the rating on

from Hold to Buy, and reiterated the $42.00 price target. In the report, Wunderlich Securities noted, “We are raising our rating on Iconix (ICON) to Buy from Hold and reiterating our price target of $42 (approximately 25% above current levels) and our estimates. From its high of almost $45 in early June, ICON has declined over 25% (versus an increase of 2% for the S&P 500), driven by worries over organic revenue growth, no incremental acquisitions, and, in the last month, a short call on ICON from a forensic accounting firm. While we do not deny any of these issues, we believe, with the Peanuts movie looming large, continued material free cash flows, and the return of the lower-end consumer, coupled with our belief that Iconix will complete at least one acquisition in 2015, that the risk/reward in the name has markedly improved and we now recommend purchase of ICON.” Iconix Brand closed on Wednesday at $33.35.