NEW YORK, United States — Kate Spade & Co., the handbag maker that's expanding into other product lines, rose the most in five months after an analyst at Cleveland Research Co. recommended buying the shares because of the brand's growth potential.

Consumers are becoming increasingly aware of Kate Spade, which may be in the “early-to-mid” stages of its growth cycle, Matthew Delly, a Cleveland Research analyst, wrote in a note to clients on Thursday.

Kate Spade has a “meaningful growth runway over the next several years and appears well positioned to utilize multiple distribution channels to engage the consumer,” Delly said.

Chief Executive Officer Craig Leavitt has set a goal of almost quadrupling Kate Spade's sales to $4 billion by expanding into fragrances, jewelry, watches and sunglasses in the mold of brands such as Ralph Lauren. Sales at the New York-based company rose 42 percent to $1.14 billion in the year through Jan. 3.

The shares rose as much as 11 percent to $22.18 in New York, the biggest intraday gain since Jan. 29. Kate Spade had slid 38 percent this year through Wednesday.

By Kevin Orland; editor: Leslie Patton.