UPDATE: Credit Suisse Initiates Neutral on DSW on Near-Term Margin Pressures

Credit Suisse initialed its coverage on DSW DSW with a Neutral rating and a rice target of $70 a share. Credit Suisse noted, "We expect gross margins to remain under pressure in 3Q12 primarily due to higher input costs and higher store occupancy costs related to this year's new store ramp. While the consensus estimates now appear to reflect that, that could create some headline risk for this well-liked stock. We expect that pressure to moderate by Q4 due to easier comparisons and as sales ramp in the company's new stores." DSW closed at $65.17 on Thursday.