Piper Jaffray Downgrades ANN, Lowers PT To $23

Piper Jaffray has downgraded its rating from Neutral to Underweight and has lowered its price target from $26 to $23 on AnnTaylor Stores ANN as the company prepares to release its quarterly results. According to Piper Jaffray, “We are lowering our rating from Neutral to Underweight on ANN shares in view of what we believe may be the third consecutive quarter of margins "missing" gross margin expectations, and in view of what we believe may be continued pressure in achieving gross margin goals for the balance of the year. Though the company's multi-year turnaround is beyond commendable in our view, we believe investors could likely sell off ANN shares against a backdrop of margin erosion until stability on this metric is achieved. We are also lowering our PT from $26 to $23.” ANN closed yesterday at $26.88.