Traders took some profits yesterday after Cherokee Global Brands said it inked several deals for expanding its namesake brand in the U.S. — the stock finished the day down 0.9 percent to $14.42 on higher trading volume.

The stock is slightly above its 52-week low of $12.92 (the high is $29.72). But this morning, Eric Beder, equity analyst at Wunderlich Securities Inc., reiterated a “Buy” rating on the stock following the licensing agreement.

Aside from the Cherokee licensing deals, Beder noted that the company “also provided hints of a wider distribution plan and confidence that there will be brand continuity into spring 2017.” In the statement Wednesday, Henry Stupp, chief executive officer, said the company has “identified and have begun to on-board new retail partners that will ensure the continued availability of an expanded assortment of Cherokee-branded products for spring 2017. We will be sharing exciting new marketing activations and additional partnership updates throughout the year.”

“While we admit frustration that there are no definitive numeric impacts or who in the retail side is going to be leading the shift away from Target, we believe the data will be forthcoming and that, given the company now has eight partners for the brand, it could easily eclipse Target in the longer run,” Beder said in his research note. The deal with Target Corp. expires in January of 2017.

The licensing deals are with High Point Design, SaraMax, Cudlie Accessories and Eastman Footwear and include innerwear and footwear as well as infant and children’s accessories. Cherokee Global Brands described this as the “second phase” of its deal making with the prior phase including dresses, denim, sportswear and outerwear, among other segments.

Beder said the “new licenses give the Cherokee brand more heft than ever.” The analyst noted that Cherokee Global Brands’ eight deals for its namesake label now gives it added leverage with retailers.

“Given that each of the licensees are industry leaders in their field and have contacts with multiple retailers, we believe the effort to expand the Cherokee brand has been materially ramped up,” Beder added.

Regarding the company’s stock and how it is viewed by Wall Street, Beder said due to “the paucity of ‘hard’ guidance and limited knowledge of the licensees, we believe investors are missing the magnitude of the changes and upside potential, which will change when the company announces its retail partners.”

Beder has the stock pegged with a $26 price target.

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