UPDATE: Credit Suisse Downgrades Fairway Due to Weak Q3 Results and Reduced Visibility

In a report published Friday, Credit Suisse analyst Edward Kelly downgraded Fairway

from Outperform to Underperform and lowered the price target to $8 from $18. A combination of weak 3Q13 results, the exit of CEO Herb Ruetsch, and increased competitive pressure were factors that lowered expectations. Credit Suisse state in the report, "Although some of the issues look to be temporary (weather, calendar), we have become particularly concerned about the consistency of the earnings shortfalls, the disappointing store opening in Chelsea, reduced visibility on the real estate pipeline, increased competitive pressure, and the management changes. While the model appears to still have solid long-term potential with better execution, the recent issues have caused us to dramatically cut our 12-month valuation below FWM's peers, our target price to $8, and ultimately our rating to Underperform as the stock seems likely to trail our coverage universe this year." On Thursday, Fairway Group Holdings closed at $11.43.