UPDATE: Barclays Downgrades PetSmart

In a note released Monday morning, Barclays analyst, Alan Rifkin downgraded shares of PetSmart, Inc.

from Overweight to Equal Weight and lowered the price target from $75 to $70. Rifkin's downgrade is based on two related factors 1) the stock price reflects the possibility of a strategic sale rather than the company's "challenging fundamentals" and 2) Rifkin believes there is downside to share price in the event that management doesn't pursue a strategic alternative. In addition to cutting the price target, Rifkin has lowered his EPS estimates for 2014-'16 from $4.30, $4.70, and $5.10 to $4.26, $4.60, and $5.00.