UPDATE: KeyBanc Capital Markets Upgrades True Religion Apparel to Hold on Sale Possibility

KeyBanc Capital Markets raised its rating on True Religion Apparel TRLG from Underweight to Hold and suspends its previous $18 price target. KeyBanc Capital Markets noted, "The WSJ reports that TRLG has engaged advisors in a sale process; we move our rating to HOLD. … We believe valuation warrants a HOLD given the potential for being acquired. On its current stock price, the Company trades at 11.6x 2012 P/E, compared to 14.5x 2012 P/E for the apparel peer group. Additionally, the Company's current valuation is 4.0x 2012 EV/EBITDA and 0.9x 2012 EV/Sales, compared to 8.3x EV/EBITDA and 0.9x EV/ Sales for the apparel peer group." True Religion Apparel closed at $21.01 on Tuesday.