UPDATE: Piper Jaffray Downgrades Zumiez to Underweight on Growth Uncertainty

Piper Jaffray lowered its rating on Zumiez ZUMZ from Neutral to Underweight and reduced its price target from $27 to $19. Piper Jaffray noted, "We expect downward earnings revisions and multiple compression to result in further share price contraction. Mounting concerns surrounding sales rate deceleration, mix shift, and model deleverage were evident in October comp sales results, despite an easier comparison. The company faces nine months of difficult forward compares (avg +11%), and with underlying business trends moderating quickly, it is difficult to confidently forecast sales and earnings targets for Q4 and 2013. Growth may need to be slowed strategically in order to reduce pressure on the operating infrastructure/margin, which suggests a discount to growth multiple is warranted." Zumiez closed at $25.32 on Wednesday.