UPDATE: Piper Jaffray Downgrades Town Sports International Holdings to Neutral, Lowers PT on Little Reason for Optimism

In a report published Thursday, Piper Jaffray analyst Sean P. Naughton downgraded the rating on

from Overweight to Neutral, and lowered the price target from $15.00 to $9.00. In the report, Piper Jaffray noted, “Following last night's earnings announcement and disappointing guide, we are lowering our rating on CLUB to Neutral from Overweight and our price target to $9 from $15 given we see little evidence deteriorating fundamentals will turn in the near to medium term (next 6-12 months). That said, for investors looking to collect yield the story remains attractive as its current 6% yield should be easily sustainable for at least the next 3 years. Where we could be wrong is that the company's new BFX studio concept could be a bigger success than we are anticipating, although this will likely be a 2015 story.” Town Sports International Holdings closed on Wednesday at $10.82.