UPDATE: Bank of America Merrill Lynch Downgrades Zale to Neutral

Bank of America Merrill Lynch is out with its report today on Zale

, downgrading ZLC to Neutral. In a note to clients, Bank of America Merrill Lynch writes, "We are lowering our rating on Zale to Neutral from Buy on what we see as limited upside after the stock's recent rally. Quarter-to-date, Zale is up 70% versus -5% for the S&P500 and -6% for the S&P Retail index." Bank of America Merrill Lynch maintains a $6.75 PO on ZLC. Shares of ZLC closed Thursday at $6.26.