BoA Cuts Tommy Hilfiger to 'Market Perform'
Banc of America downgraded Tommy Hilfiger (TOM ) to market perform from buy.
Analyst Susan Silverstein says management has been selling a significant amount of stock in the last 12-18 months with a more difficult blow this past Thursday, Feb. 14, as CEO Joel Horowitz sold 60% of his holdings. Given Mr. Horowitz's key role, Silverstein believes the sale, particularly at such a low valuation, can lead to investor concern and an overhang on shares in the near term. With limited operational improvements, combined with these stock sales, she reduced her confidence in a turnaround. Despite the low valuation, Silverstein moves to the sidelines until she sees signs that can drive shareholder value.