The firm said it lowered its rating on the discounted designer shoe chain as it believes the company lacks visibility and is facing increased promotions.
Citigroup lowered its price target on DSW to $26 from $46.
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The company's price target was also cut to $30 from $44 at Credit Suisse (CS) based on its recent guidance update.
Separately, TheStreet Ratings team rates DSW INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DSW INC (DSW) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."