Guess Shares Jump 5% Following Piper Jaffray Upgrade

Shares of Guess (NYSE: GES) gained over five percent on Tuesday after Piper Jaffay analyst Erinn Murphy upgraded Guess from Neutral to Overweight following meetings in Italy last week.

After her discussions with apparel and accessories contacts, Murphy noted signs of stabilized spending. The analyst added that her contacts were optimistic on the new government led by Prime Minister Matteo Renzi.

Murphy further reported that the company's changes to markdown categories could help margin stability. Piper Jafray highlighted the 40 percent off markdown this year and limited 50 percent off category in Guess stores.

The stock climbed as high as $28.82, up 5.22 percent. It was trading around $28.65 at last check, up 4.6 percent.