UPDATE: Wedbush Increases PT on Zumiez to $40

Wedbush reiterates a Neutral rating on Zumiez

and increases its price target from $36 to $40. Wedbush notes, “With the acquisition of highly complementary retailer, Blue Tomato, combined with strong QTD Q2 sales, ZUMZ was able to raise guidance, highlighting solid growth in the core business from a highly differentiated assortment that continues to hold pricing power. We believe the acquisition is a long-term positive for ZUMZ as it nearly doubles the company's addressable market opportunity and provides a solid footing in the European market with existing infrastructure and an experienced management team.” Zumiez closed at $41.72 on Wednesday.