UPDATE: Monness Crespi Hardt Downgrades Children's Place Retail Stores to Neutral on Caution Ahead of 3Q Results

In a report published Thursday, Monness Crespi Hardt analyst Jim Chartier downgraded the rating on

from Buy to Neutral. In the report, Monness Crespi Hardt noted, “Our checks indicate increased promotional activity and soft traffic in November to date despite comping against the impact of Hurricane Sandy. We previously anticipated upside to management's FY13 EPS guidance given easy comparisons and the benefit of lower product costs in 2HFY13. Now, we are concerned that increasing promotional activity in a competitive environment could mitigate these benefits. While sentiment is negative on PLCE shares and estimates have moved down ahead of the quarter, we are concerned about a cautious outlook for 4Q. Longer term, we see the potential for meaningful margin improvement, driven by new systems, better sourcing and store optimization.” Children's Place Retail Stores closed on Wednesday at $52.96.