UPDATE: Credit Suisse Downgrades Ruby Tuesday to Neutral on Macro Headwinds, Real Estate Valuation
Credit Suisse downgraded Ruby Tuesday (NYSE: RT) from Outperform to Neutral and maintained a $8.00 price target.
Credit Suisse noted, "Sale-leasebacks are a good strategy, but lower the value of remaining owned real estate, and with shares up from the $6-$7 range, real estate offers less compelling downside support. We believe the new CEO offers an improved strategy; however, macro pressures add an additional headwind, and exposure to a lower-end consumer leaves RT particularly vulnerable. Furthermore, we are below consensus on comps and EPS for 2HF13 and FY14."
Ruby Tuesday closed at $7.91 on Monday.
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