UPDATE: Credit Suisse Downgrades The Bon-Ton Stores to Underperform on Valuation

Credit Suisse reduced its rating on The Bon-Ton Stores

from Neutral to Underperform but raised its price target from $5 to $7. Credit Suisse noted, "[W]e view BONT's equity as more of an option substitute than an integral part of the capital structure, and after rising ~100% since early August, we feel that the option has become too expensive. Despite making great strides in just a few months, the road ahead remains difficult, and we still are cautious in regards to BONT's ability to grow EBITDA. Therefore, we lower our rating from Neutral to Underperform." The Bon-Ton Stores closed at $12.96 on Tuesday.