UPDATE: Piper Jaffray Downgrades Tilly's to Neutral on Demand Maturation

Piper Jaffray reduced its rating on Tilly's

from Overweight to Neutral and reduced its price target from $16 to $13. Piper Jaffray said, "We are downgrading TLYS shares to Neutral based on a rapidly maturing industry backdrop, which has resulted in sales rate compression and ultimately may limit the total revenue opportunity and chain size for TLYS. In addition, we think competitive forces from Amazon create a dominant online competitor and alter the distribution structure of the industry. … If industry dynamics and channel shift further pressures sales growth over the next 2-3 years, a lower multiple may be justified." Tilly's closed at $13.49 on Monday.