KeyBanc Downgrades Ascena Retail Group (ASNA) to Hold

February 25, 2013 9:14 AM EST
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Price: $5.42 --0%

Rating Summary:
    8 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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KeyBanc downgraded Ascena Retail Group (NASDAQ: ASNA) from Buy to Hold saying they believe that the middle income consumer remains pressured.

The firm comments, "With a +15% increase in gas prices since January 17, 2013, a roughly $36 billion gap in tax refunds paid year-over-year, and the impact of the payroll tax, we believe that consumers remain pressured... At Ascena, the Company faces a difficult turnaround and integration with its recently acquired businesses and its multi-year growth driver, Justice, is showing signs of a slowdown. Valuation for both companies remains reasonable, but with the potential for further earnings pressure, we move to the sidelines."

NOTE: Aeropostale (NYSE: ARO) was also downgraded.

For an analyst ratings summary and ratings history on Ascena Retail Group click here. For more ratings news on Ascena Retail Group click here.

Shares of Ascena Retail Group closed at $17.11 yesterday.

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