Piper Jaffray downgraded Zumiez, Inc. (NASDAQ: ZUMZ) from Overweight to Neutral with a price target of $31.00 following Q2 results saying the stock is fully valued.

Analyst Stephanie Wissink comments, "We are moving to a Neutral rating on ZUMZ as we view the stock as fully valued, and while we do see inherent upside to the EPS forecasts for FY16, we are not convinced that comp rates can sustain the level needed to drive material margin outperformance. On a relative basis, Zumiez has out-executed its peers and is taking share. But justifying a higher multiple or stretching the earnings expectations seems unreasonable at this juncture, particularly if square footage growth begins to slow as the company reevaluates other capital deployment opportunities. We don't necessarily see a business model with excess costs so lowering the leverage threshold is not necessarily a catalyst for shares. Shares are down after hours in response to a lower than expected guide, but we but we see this after market trading at ~$31/share appropriately valuing the stock relative to earnings."

The firm moved FY 2015 EPS from $1.58 to $1.60.

For an analyst ratings summary and ratings history on Zumiez, Inc. click here. For more ratings news on Zumiez, Inc. click here.

Shares of Zumiez, Inc. closed at $32.41 yesterday.