NEW YORK (TheStreet) -- Zumiez (ZUMZ) shares are down -10% to $29.18 on Friday after analysts at Piper Jaffray (PJC) cut its stock rating to "neutral" from "overweight" while setting a $31 price target.
The downgraded outlook comes a day after the sports apparel retailer reported third quarter earnings guidance between 47 cents and 50 cents per diluted share, short of Thomson Reuters 54 cent consensus.
The retailer posted second quarter earnings of 26 cents per diluted share, 3 cents better than analysts were expecting, on revenue of $177.6 million that was slightly below analysts $177 million guidance.
TheStreet Ratings team rates ZUMIEZ INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZUMIEZ INC (ZUMZ) 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 revenue growth, solid stock price performance, growth in earnings per share, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: