Bank of America Merrill Lynch Maintains Underperform on Liz Claiborne

Bank of America Merrill Lynch is out with its report today on Liz Claiborne LIZ, maintaining Underperform. In its report, Bank of America Merrill Lynch writes, "We continue to believe LIZ's outlook remains in transition, as a sustainable turnaround in Lucky and Juicy could continue to take time and SGA deleverage could weigh on earnings, given soft top-line trends. LIZ's risk given its high leverage ratio for a specialty mall-based retailer could offset a profit swing in Partnered brands division in 2011 (Exit of Liz Family brands, including a Liz Claiborne exclusive licensing deal at JCP JCP in Aug 2010)." Bank of America Merrill Lynch maintains a $4 PO on LIZ. Shares of LIZ closed Tuesday at $5.51.