April 17 (Reuters) - Shares of snowboarding gear retailer Zumiez Inc (ZUMZ.O) jumped 25 percent after KeyBanc Capital Markets gave its highest rating to the company’s stock.
The brokerage, which upgraded Zumiez to “buy” from “hold,” said a more normalized spring weather patterns in April relative to March could help the company post better-than-expected April same-store sales results.
“We continue to have a high degree of confidence in the long-term prospects of both the action sports industry and Zumiez’s goal to grow its domestic store base to roughly 800 units,” analyst Brandon Ferro wrote in a note to clients.
Zumiez, which currently operates 330 stores catering to young men and women between ages 12 and 24 years, posted a drop of 17.9 percent in March same-store sales due to weak sales at its apparel and accessories business. [nBNG463696]
Ferro set a price target of $13 on the company’s stock, which was up $2.11 at $11.55 in morning trade on Nasdaq. They touched a high of $11.83 earlier in the session. (Reporting by Poojya Trivedi in Bangalore; Editing by Anil D’Silva)