By
Reuters
Published
Nov 4, 2009
Reading time
2 minutes
Download
Download the article
Print
Text size

Lazard cuts 8 US retailers, says sell Saks

By
Reuters
Published
Nov 4, 2009

Nov 4 (Reuters) - Lazard Capital Markets downgraded eight retailers to "hold" from "buy", including apparel retailers American Eagle Outfitters Inc (AEO.N) and Guess Inc (GES.N), citing the stocks' dramatic out-performance since March.


American Eagle Outfitters

The brokerage also cut upscale department store operator Saks Inc (SKS.N) to "sell" from "hold".

The retail, apparel and footwear stocks have risen 180 percent since March while the S&P 500 index .SPX is up only 55 percent in the same period, the brokerage said, adding that the stocks are now discounting a significant earnings recovery.

"No one seems to be able to find a good short idea. This is usually a good time to take some chips off the table," analysts led by Todd Slater wrote in a note to clients.

The analysts said the sentiment in the market is shifting to "sell the news," as investors are moving to a more profit-taking mentality and are selling even into rising earnings outlooks.

The analysts kept their "buy" rating on Wal-Mart Stores Inc (WMT.N) and off-price retailer TJX Cos Inc (TJX.N).

For the alerts double click [nWNAB9771]

(Reporting by Viraj Nair and Vidya Lakshmi in Bangalore; Editing by Deepak Kannan)

(([email protected]; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: [email protected])) Keywords: RETAILAPPAREL/RESEARCH LAZARDCAPITALMARKETS

(C) Reuters 2009. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nBNG23270

© Thomson Reuters 2024 All rights reserved.