NEW YORK (TheStreet) -- Things aren't looking good for Sears (SHLD) after another investment firm casts doubts on its recovery. In a report Monday, Credit Suisse gave the struggling retailer an "underperform" rating with a $20 price target, turning bearish as it notes each quarter is seemingly worse than the previous one.
"Sears has turned its operations into a $1.2 billion negative cash flow story in 2013 (assuming similar January outflows from previous years). More important, as Sears passes off its good locations and its profitable segments, and loses market share to stronger retailers in its core franchises, the hope of this disaster turning around becomes remote," wrote analyst Gary Balter in the report.
For the fiscal year ending January, Credit Suisse estimates the company will see a net loss of between $6.05 and $8.25 a share and in the range of $4.78 to $6.84 a share in the year after. Analysts polled by Thomson Reuters anticipate a net loss of $6.20 a share this year and a loss of $5.72 a share in 2015.
Late last week, the Hoffman Estates, Ill.-based business provided an update on its quarter-to-date performance sending shares spiraling. Same-store sales as of Jan. 6 were down 7.4% compared to the same period a year earlier, a dismal result for the critically-important holiday shopping season. Sears Domestic same-store sales dropped 9.2% while Kmart experienced a 5.7% fall.
By way of comparison, in the third quarter ended October 2013, comparable store sales fell 3.1%, which included a 2.1% drop at Kmart and a 4% decrease at Sears Domestic.