Brean Murray Ups Wet Seal
Brean Murray raised its investment recommendation on Wet Seal (WTSLA ) to hold from sell.
Analyst Eric Beder believes that while the inherent risks that the company faces remain almost wholly intact, a decline in its share price reduced the relative reward of a sell rating. He noted that since he initiated coverage on Aug. 22 with a sell rating, the stock has declined 33.9% vs. a 4.5% drop in the S&P Retailing Index and a 1.0% increase in the S&P 500. He believes the drop reflects continued realization of investors of potential for further share dilution, which limits earnings per share upside and wider reassessment of risk for many of the highly speculative plays in the retailing industry in the wake of Katrina. He kept a $4 price target.