Collective Brands, Inc. (PSS) Downgraded To Neutral

MKM Partners has downgraded Collective Brands, Inc. (NYSE: PSS) from a Buy to a Neutral rating. The stock has been downgraded as it has moved closer to the price target of $25 set by MKM Partners.

Collective Brands, Inc. reported results for the fourth-quarter on Tuesday. The company reported adjusted loss of $0.18 per share, lower than MKM’s estimate of a loss of $0.23 per share. The company saw a sharp rebound in operating margin in the fourth-quarter, which was driven by 470 basis points improvement in gross margin, and structural expense reductions.

The company’s stock is currently trading at a multiple of 15x the 2010 EPS estimate of $1.60.