UPDATE: Wedbush Upgrades Ann Taylor Stores to Outperform (ANN)

Wedbush is out with its report today on Ann Taylor Stores (NYSE: ANN), upgrading shares of ANN from Neutral to Outperform.

In a note to clients, Wedbush writes, "As a result of positive checks throughout Q1 and our expectations that consensus outlook for F11 are too conservative, we are raising our estimates and upgrading ANN shares to OUTPERFORM from NEUTRAL. We continue to witness strong conversion trends driven by strength at ATS and improved product blend at Loft. With both concepts delivering solid sales supported by management's strategic pricing and sourcing initiatives following a multi-year restructuring program, we expect significant upside to consensus earnings assumptions and view the shares as compelling at current levels."

At the time of posting, shares of ANN were trading pre-market at $32.98, up 4.63% from Thursday's close.