UPDATE: Goldman Sachs Downgrades Saks to Sell on Slowing Fundamentals

Goldman Sachs reduced its rating on Saks

from Neutral to Sell and lowered its price target from $12 to $9. Goldman Sachs commented, "We are downgrading Saks Inc. (SKS) to Sell from Neutral as we view it as a cyclical retailer bound by the macro-environment. We believe consensus estimates have yet to reflect a tougher macro backdrop and now expect slowing top-line growth coupled with margin contraction to cause downward EPS revisions and multiple compression." Saks closed at $10.26 on Tuesday.