Cache Rises After 2 Upgrades

NEW YORK (AP) -- Shares of Cache Inc. rose on Friday, after two analysts upgraded the stock on improving performance at the women's specialty apparel retailer.

Piper Jaffray & Co. analyst Neely J.N. Tamminga on Friday said Cache Inc.'s sales trends are starting to stabilize, helped by new product introductions and dress sales.

"As evidenced by our checks at the Cache stores over the past month, we believe that the majority of the Contour collection (the company's new wear-to-work product-line extension) has been delivered across the chain -- just in time for this all-important Labor Day weekend," Tamminga wrote in a client note on Thursday.

She raised her rating to "Outperform" from "Market Perform" and lifted her price target by $2 to $18.

Paula Kalandiak, a First Albany Capital analyst, said her channel checks show the Contour Collection is performing well as it rolls out.

"We have not had such a positive response from Cache's salespeople in a long time," Kalandiak wrote. "We also heard that footwear and sunglasses are performing very well in the stores that have them (about 25 locations)."

She upgraded the company to "Buy" from "Neutral" raised her 2007 earnings estimate by 3 cents to 51 cents per share.

Cache shares rose $1.02, or 6.4 percent, to $16.90 during midday trading. The stock has traded between $12.50 and $26.32 during the past 52 weeks.