The Container Store Group Inc. shares surged about 6% in early trade Thursday, after BB&T upgraded the stock to hold from underweight following its recent underperformance. The stock has lost 17% of its value since late march, while the S&P 500 Retail Index has climbed 13% and the S&P 500 is up 1%. “We also believe growing customer interest in TCS Closets, the company’s high-end custom closet and shelving offering, could prove to be a positive catalyst,” BB&T analysts wrote in a note. The bank called “a significant percentage” of stores across the company’s markets to check on recent sales trends and identify any categories that were performing especially well, said the note. A full 73% reported healthy trends, with 27% saying sales were “okay” or “slow”, it said. “Many of the stores we contacted reported broad based strength, with kitchen items and shelving selling particularly well. A few store associates specifically mentioned they believed their locations were gaining market share from local competitors,” said the note.
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