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RBC Capital downgraded shares of

AnnTaylor

(ANN)

and

Gap

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(GPS) - Get Gap, Inc. Report

on Monday to sector perform from outperform, saying the valuation on both stocks has gotten too high.

The firm said Gap's merchandise assortment and marketing provide the company with a chance to see positive same-store sales in October and beyond, but investor concerns could hurt the stock's performance.

RBC lowered its price target on Gap to $22 from $23.

As for AnnTaylor, the research firm said with comparable-store sales in the high single digits recently, the fundamentals are catching up with the stock. RBC has a $38 price target on AnnTaylor.

Shares of Gap closed Friday at $18.26, and AnnTaylor finished the day at $32.30.