True Religion Spikes on Analyst’s Forecast

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Shares in True Religion Apparel Inc. got a boost Thursday after an analyst forecast long-term growth for the company.


Morgan Keegan & Co. analyst Brad Stephens said that while he’s taking a conservative approach to the company’s prospects and investors should purchase the stock given opportunities for wholesale growth, especially overseas.


“We have no idea what the company is set to unveil, but believe running the model out a few years still results in numbers substantially above the most bullish of expectations,” Stephens wrote in a client note.


The upgrade is the third True Religion has received since April and follows a May 2 announcement that it had filed several delayed or restated financial reports dating back to 2006, allowing it to retain its listing on Nasdaq.


In April, True Religion posted a positive earnings report that quieted Wall Street skeptics who had built up a big short interest in the stock. First quarter profits hit $6.95 million, a 35 percent jump from the same period a year earlier. Sales were up 47 percent to $53.4 million.


Shares in True Religion rose 7.2 percent to $24.36 in afternoon trading Thursday.

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