Analysts Upgrade Bebe

NEW YORK CITY-Retail analysts at Cowen and Co. upgraded women’s retailer Bebe to outperform from neutral, in part because of forecasts in store growth. The firm is forecasting square footage growth of nearly 18% for the Brisbane, CA-based company’s coming year.

Cowen analysts say there is growth potential at the 48-store Bebe Sport, which is slated to have 59 stores by the end of the retailer’s fiscal year. They also expect more openings of the company’s 189-store namesake chain, as well as expansions of units in that chain to accommodate a larger product assortment.

Cowen’s upgrade was given despite Bebe’s slower-than-expected recent sales. Same-store sales rose 4% in December year over year due to a slowdown in the final weeks of the month.