UPDATE: Bank of America Reiterates Neutral Rating, Lowers PT on Zulily on More Deceleration in 4Q

In a report published Wednesday, Bank of America analyst Justin Post reiterated a Neutral rating on

, but lowered the price target from $46.00 to $38.00. In the report, Bank of America noted, “Zulily reported in-line rev. at $286mn vs. the Street at $286mn, and EBITDA at $6.4mn beat our $2.1mn aided by improved fulfillment automation gross margin upside. Active customer growth decelerated to 72% y/y (from 86% in 2Q) as marketing comps from 3Q13 were difficult and Zulily experienced some e-mail delivery issues, resulting in a modest 3Q marketing pullback. Zulily maintained its 2014 rev./EBITDA outlook despite its big EBITDA beat and we view the unchanged 2014 outlook as a relative positive given widespread downward estimate revisions across the eCommerce sector this reporting season, but Street was likely looking for upside given recent upbeat analyst day and a premium stock valuation multiple.” Zulily closed on Tuesday at $35.96.