UPDATE: Deutsche Bank Lowers Target to $21 on Blue Nile

Deutsche Bank maintains its Sell rating on Blue Nile

and lowers its price target to $21 from $24 on margin pressure from massive investments in 2012. Deutsche Bank says, "With discretionary consumer spending still volatile and the company ramping mktg spend to drive growth, we pare our TP to $21 from $24. The pressures on underlying economics in engagement jewelry and the shift in strategy to a broader consumer demographic (via mix changes, positioning, marketing) will likely lead to EPS pressure in 2012. While such a move is positive long-term, the buildout of the business to everyday jewelry will require re-investment in the near-term. At 28x 2013E EPS on no profit growth, we think downside to shares exists." NILE closed at $41.83 a share on Wednesday.