UPDATE: Bank of America Merrill Lynch Downgrades Zumiez to Underperform, Lowers PT

In a report published Friday, Bank of America Merrill Lynch downgraded its rating on Zumiez ZUMZ from Buy to Underperform, and lowered its price target from $31.00 to $19.00. BofA Merrill Lynch noted, “We are changing our rating on Zumiez to Underperform from Buy and lowering our Price Objective to $19 from $31 as we see risk to 2013 estimates and a lower probability of a December rebound. Trends at Zumiez have been moderating since the early Back to School season, but we thought a December rebound was likely if weather cooperated. However, after bad snow conditions continued into December, we think recent weak comps are likely to continue. Furthermore, we think consensus 2013 estimates are too high. With the stock trading at a group average multiple of 14x our F2013 estimates, we see downside if comps disappoint and estimates are reduced.” Zumiez closed on Thursday at $20.70.