UPDATE: Citigroup Downgrades Ascena Retail Group to Neutral, Lowers PT

In a report published Wednesday, Citigroup downgraded its rating on Ascena Retail Group ASNA from Buy to Neutral, and lowered its price target from $25.00 to $20.00. Citigroup noted, “We rate ASNA Buy. We believe ASNA's competitive and differentiated brand portfolio with no strong competition, Charming Shoppes M&A upside, shared service cost savings & deal making capability will drive attractive +M-teens growth. Greater convenience/service, sharper fashion execution, and minimal direct competition should enable ASNA to continue to gain share vs. dept store/mass competitors. Shared services yields back office savings, enables best practices, allows brand management to focus on retail execution, and prepares ASNA for future M&A. ASNA announced that it completed its acquisition of Charming Shoppes on 6/15/12. We believe the deal allows ASNA to continue its mission to be the plus-size authority for fit, fashion and value.” Ascena Retail Group closed on Monday at $18.47.