Shares of Costa Mesa-based clothing company Volcom Inc. fared better than most on Wall Street Tuesday after an analyst upgraded his rating and price target on the stock based on feedback from retailers.
Volcom’s stock rose about 2% during the day before finishing up less than 1% at the close of trading on a market value of $480 million.
The upgrade helped Volcom hold onto a gain on a day when the major indexes were off about 1.5% on renewed concerns about housing, banks, oil and the larger economy.
Jonathan Grassi of Ohio’s Longbow Research upped his rating on Volcom from “neutral” to “buy” and said he’s looking for the stock to reach $25 per share.
Volcom’s shares closed at nearly $20 on Tuesday.
The analyst cited “positive channel checks,” or encouraging words about Volcom from retailers that sell its clothes.
Volcom makes clothes inspired by surfing, skateboarding, snowboarding, art, music and film that are sold in mall stores, surf shops and boutiques.
In April, Volcom offered a sales outlook for the current quarter that surpassed what Wall Street had been expecting but warned of a possible loss.
