Vera Bradley's stock gets a big boost from analyst upgrade

Vera Bradley Inc.'s stock shot up 6% in afternoon trade Thursday, after the handbag and accessories maker was upgraded at Wunderlich Securities, which cited the belief that company was "on the cusp of material improvements." Analyst Eric Beder raised his rating to buy, after being at hold for the last year. He bumped up his stock price target to $24, which is 21% above current levels, from $15. Beder said that after a recent meeting with management, he believes "the company is nearing the next major round of upside catalysts," as new products and fabrications take hold, and as the company's online business normalizes. "We believe, as Vera Bradley demonstrates that it has the product lineup and compelling offerings to drive more diversified and visible returns, that investors will become more aggressive in the name," Beder wrote in a note to clients. The stock has now soared 25% year to date, while the S&P 500 has slipped 0.4%.

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