UPDATE: Barrington Research Downgrades U.S. Auto Parts Network to Underperform

In a report published Wednesday, Barrington Research downgraded its rating on U.S. Auto Parts Network

from Market Perform to Underperform. Barrington noted, “We are reducing our rating on PRTS to UNDERPERFORM from MARKET PERFORM based on consistent underperformance and execution coupled with an increasingly competitive environment. In response to competitive conditions, PRTS plans on reducing its network of websites over the next 24 months as it concentrates on its few well-known brands. Due to this shift in strategy, management anticipates a reduction in the number of visitors and revenues with a negative revenue impact expected to be about 3% in the first 12 months and another 10% of revenue in the following 12 months. Given this new strategy, we believe any return to profitable growth for the company is pushed out at least two years from now.” U.S. Auto Parts Network closed on Tuesday at $3.68.