BofA/Merrill Lynch analyst Paul Alexander reiterated a Buy rating and $33 price target on Zumiez, Inc. (NASDAQ: ZUMZ) after Q1 beat on better gross margin. The company is defying the weak teen landscape, it was noted.

Alexander notes 2Q guidance was tempered based on comps of flat to down low-single-digits and a gross margin decline of 100-150bp, due mainly to deleverage of occupancy. That said, the firm said FY 2014 still looks good and they are maintaining our F2014 EPS estimate of $1.63.

"We think Zumiez has good strategies to take market share and drive long-term growth, and given its above peer average square footage and earnings growth, we think the stock should trade at a premium to the group instead of at parity," he said.

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 $27.22 yesterday.