Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Early this morning, R.W. Baird & Co. upgraded shares of Vera Bradley Designs (NYSE: VRA). The stock promptly popped 10%; even better, it seems to be holding on to most of those gains today.

So what: So far, no one seems to know much more about the upgrade than the simple fact that it happened. Baird is apparently telling investors to expect a $46 stock price within the year -- about a 14% profit on top of today's post-pop price.

Now what: Don't believe it. Not that Baird's a bad analyst. To the contrary, our CAPS stats show it to be one of the better analysts out there. But at a share price nearly 38 times as large as its earnings, Vera's looking awfully pricey today -- even with the 24% long-term growth analysts have it pegged for. If I were a shareowner, I'd be looking to cash out today's gains and look for something selling at a non-nosebleed price. Maybe even something that pays a bit of a dividend.

But that's just me. If you think Vera's as styling as Baird apparently does, do yourself a favor. Add the stock to your watchlist and keep close tabs on its performance.

Fool contributor Rich Smith does not own (or short) shares of Vera Bradley Designs. The Motley Fool has a disclosure policy.

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