NEW YORK (TheStreet) -- Shares of G-III Apparel (GIII) - Get Report were falling 7.51% to $30.65 on heavy trading volume late Wednesday morning as Stifel reduced its rating on the stock to "sell" from "hold," the Fly reports.
The firm has a $28 price target on shares of the New York-based apparel company.
Yesterday, G-III Apparel reported weaker-than-expected results for the 2017 fiscal second quarter and cut its full-year forecast.
Despite the recent decline in the stock, its risk and reward ratio is unfavorable due to multiple risks faced by the company, Stifel noted.
The firm said risks include "structurally challenged distribution channels" and high debt levels, the Fly added.
More than 2.06 million of the company's shares traded so far today compared to its average 30-day volume of 928,632 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
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.
You can view the full analysis from the report here: GIII