Wall Street Strategies Downgrades On Ethan Allen

Wall Street Strategies is lowering its price target on shares of Ethan Allen Interiors Inc. ETH to $16 from $25, and is downgrading its rating on shares to Sell from Hold. In a note to clients, Wall Street Strategies writes, "We are downgrading our rating on Ethan Allen (ETH) to Sell from Hold, acknowledging this is more of a short-term call ahead of 4Q11 earnings on August 4. In our view, there is heightened downside margin risk that the market is not accounting for, arising from a more promotional cadence by the company amid a generally sluggish furniture demand backdrop. Risk reward at the moment is unfavorable." Shares of ETH are up 42 cents to $19.23, a gain of 2.23%.