UPDATE: Wedbush Downgrades the Children's Place Retail Stores to Neutral, Lowers Price Target to $46

According to Wedbush, the Children's Place Retail Stores (NASDAQ: PLCE) is downgraded to Neutral.

Wedbush said that it recommends investors lighten up their positions of PLCE shares as it approaches Q4 earnings on 3/7/12 before the market open as it anticipates conservative guidance along with ~25% short interest to pressure the shares. “With checks indicating deeper discounts year-over-year and lingering seasonal carryover that could impact Q1 margins, we are reducing our Q1 forecasts below consensus.”

The Children's Place Retail Stores closed yesterday at $48.84.