On Friday, shares of auctioneer Sotheby’s Holdings Inc. are surging, up around 10% in midday trading after Cowen upgraded the company from Market Perform to Outperform.

Analyst Oliver Chen additionally gave Sotheby’s a new price target of $45.00, saying in a note to clients that he likes the auctioneer’s “ongoing modern transformation underway, capital light agency business model, stabilizing margin profile, and favorable risk/reward given prospects of an improving art market.” 

“BID’s stabilizing auction commission margin profile indicates that the pricing environment and discipline appear under control. We view BID as a long-term global luxury idea given sustainable barriers to entry in a duopolistic art market--this is underscored by top notch brand equity and selling specialist capabilities,” Chen continued.

Sotheby’s has gained almost 50% year-to-date, and currently sits at a #5 (Strong Sell) on the Zacks Rank, with a VGM Score of ‘F.’ For the current quarter, BID expects year-over-year earnings growth of 13.03%, while sales are estimated to decline 19.48% for the same time period. The stock has an average earnings surprise of 9.18%.

SOTHEBYS Price, Consensus and EPS Surprise

SOTHEBYS Price, Consensus and EPS Surprise | SOTHEBYS Quote

Stocks that Aren't in the News…Yet

You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>