NEW YORK (TheStreet) -- Pier 1 ImportsPIR stock was downgraded to " sector weight" from "overweight" by analysts at KeyBanc Capital Markets this morning. 

The firm originally had a bullish outlook on the recovery in housing but it's now bearish as trends point to a slowing housing growth affecting companies like Pier 1 Imports. 

Adding to this downside, competition is intensifying in the home furnishings sector as e-commerce rivals are grabbing market share. 

Until analysts see signs of top-line improvement, they're on the sidelines for now.

There's potential for margin recovery from right-sizing inventory, the firm noted. Pier 1 Imports stock is unchanged in pre-market trading on Wednesday.  

Based in Fort Worth, Pier 1 Imports engages in the retail sale of decorative home furnishings, furniture, gifts, and related items. 

Separately, TheStreet Ratings currently has a Hold rating on the stock with a letter grade of C-. 

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The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, weaknesses include feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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: PIR

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