Deutsche Bank Downgrades Blue Nile (NILE) to Sell; Strategy Reset, CEO Out

Deutsche Bank downgraded Blue Nile (NASDAQ: NILE) to Sell with a price target of $24.00.

Deutsche analyst says, "The resignation of the CEO, pressures on underlying economics in engagement jewelry, and most importantly shift in strategy to a broader consumer demographic (via mix changes, positioning, marketing) may lead to earnings pressure in 2012. While such a move is positive long-term, the buildout of the business to everyday jewelry may require re-investment in the near-term. At 33x 2012E EPS on no/declining profits, we think downside to shares exists."

For an analyst ratings summary and ratings history on Blue Nile click here. For more ratings news on Blue Nile click here.

Shares of Blue Nile closed at $48.81 yesterday.

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