NEW YORK (TheStreet) -- Dillard's (DDS) - Get Report stock is down 1.96% to $83.60 in early-morning trading on Monday after the company was downgraded to "sell" from "hold" at DeutscheBank. The firm maintained its $70 price target on the stock.
The Little Rock, AR-based retailer faces a "difficult road ahead" due to persistently weak comparative sales, Deutsche Bank said.
"Revenue growth has stalled amidst persistent consumer malaise around apparel and accessories," the firm said.
Additionally, Dillard's faces weakness in Southern-border and energy-producing states such as Texas, which holds 20% of the company's store base, Deutsche Bank added.
The company receives about 5% of its sales from e-commerce channels, while its peers receive 10% to 20% of sales from e-commerce. Dillard's "lacks the infrastructure or management initiative to catch up," Deutsche Bank said.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: DDS