J.Crew Stock is on the Rise {oh yeah!}

There is an interesting article over at Forbes (click here) about J.Crew's stock price and its recent positive trend.

J.Crew climbs as analyst lifts to 'Outperform'
By Associated Press
August 18, 2009

Shares of J.Crew Group Inc. surged Tuesday, getting a boost from a ratings upgrade and price target increase.

BMO Capital Markets analyst John Morris lifted the retailer to "Outperform" from "Market Perform" and raised his share price target to $35 from $25.

In a client note, Morris said the New York-based company is laying the groundwork for a strong long-term performance partly on signs that its fall merchandise is off to a good start.

"Our sources close to the company also confirm that not only is the merchandise trend-right, but it is differentiated to the competition - a major positive," the analyst wrote.

The recession and budget-conscious shoppers have also led many department stores to play it safe, giving J.Crew a chance to eat into market share, Morris explained.

"We think J.Crew is getting the benefit of shoppers veering away from the ultra luxe high-end department stores in favor of J.Crew's more affordable wares in this environment," he said.

Morris raised his second-quarter earnings estimate to 20 cents per share from 12 cents per share. Analysts surveyed by Thomson Reuters, whose estimates normally exclude one-time items, predict profit of 14 cents per share.

J.Crew's stock gained $1.84, or 6.5 percent, to $29.97 in afternoon trading. The shares have traded in a range of $8.02 to $38 over the last year.

This is wonderful news for J.Crew's stockholders (including myself). I am happy to hear that J.Crew is still outshining its competitors through its "trend-right" merchandise. Yey!

What are your thoughts on the article? Do you disagree or agree with the comments about J.Crew, including their ability to differentiate themselves well? Do you think other retailers are playing it "too safe"? Would you consider purchasing J.Crew stock? :)