Deutsche Bank Starts Saks Inc. (SKS) at Sell; Valuation Well Above Peers

Deutsche Bank initiates coverage on Saks Inc. (NYSE: SKS) with a Sell. PT $8.00.

Deutsche analyst says, "We believe the deceleration in August SSS (-1,500 bps on 2-year stacked basis) could be a harbinger of bad things to come and we remain concerned that Saks NYC flagship could see a slowdown due to (1) tough comps; (2) lower Wall Street bonuses/layoffs; and (3) slowing tourism. Complicating matters, with investment costs higher, SKS could see greater deleveraging (vs. peers). Finally, valuation is not attractive at 19.3x '12 EPS (vs peers at 10.5x)."

For more ratings news on Saks Inc. click here and for the rating history of Saks Inc. click here.

Shares of Saks Inc. closed at $9.93 yesterday.

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