Piper Jaffray Reinstates Neutral Rating on Christoper & Banks After Dividend Suspension

Piper Jaffray has published a research report on Christopher & Banks CBK after the company's board announced it would be suspending its dividend. In the report, Piper Jaffray writes, "We are reiterating our Neutral rating following preliminary FQ3 results and the announcement that CBK will be suspending its dividend. Although the company appears to have ended the quarter with more than $2 per share in cash, management indicated that it will miss its original gross margin guidance (given on 10/5/11) by north of 400 bps. We believe the decision to suspend its dividend is prudent given the potential for continued sharp operating losses amidst an intensely promotional competitive environment, however the shares could come under continued pressure should yield-seeking investors look to exit their positions." Piper Jaffray reinstates its Neutral rating and $3 price target on Christopher & Banks, which is currently trading down $0.08 from yesterday's $2.48 closing price.