UPDATE: Piper Jaffray Upgrades Zumiez, Inc. (ZUMZ) to Overweight

Piper Jaffray upgraded Zumiez, Inc. (NASDAQ: ZUMZ) from Neutral to Overweight with a price target of $30.00 (from $27.00).

Analyst Stephanie S. Wissink said, "We are opportunistically upgrading shares to Overweight as we see a combination of reconciled valuation for more modest sq ft growth (from 20x to mid-teens); potential for estimate upside tied to streetwear inspired fashion supporting a premium (18x) to group multiples (15x); evolution of the lifestyle trend from core urban to suburban areas where Zumiez maintains a competitive niche; and cost controls that are in place to counterbalance sales volatility. Estimates are unchanged, but we see upside potential. We are using a slightly extended PT multiple at 18x (vs. 16x prior) and anticipate revising the estimate/multiple balance exiting the Q1 report. PT to $30 from $27."

For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.

Shares of Zumiez, Inc. closed at $24.65 yesterday.

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