UPDATE: Sterne Agee Downgrades Cache to Neutral, Lowers PT to $7

Sterne Agee lowers its rating on Cache CACH to Neutral from Buy and lowers its price target to $7 from $9 on concerns regarding heightened Q4 promotions. Sterne Agee notes, "Our research suggests that Cache was more promotional in seven of the eight weeks of the holiday season compared to last year. We are aware that CACH had planned to be more promotional at holiday with a number of pre-planned promotions to drive traffic and comps but the warmer than normal weather likely added to the promotions on sweaters and faux fur outerwear. Our Q4 estimates are lowered to $0.20 from $0.30 as we are now assuming a comp of 9% versus 12% earlier." CACH closed at 6.01 per share on Monday.