Piper Jaffray Cuts Blue Nile to Underperform
Piper Jaffray downgraded Blue Nile (NILE ) to underperform from market perform, citing the stock price valuation.
Analyst Aaron Kessler cited lower-than-expected marketing spend, coupled with share buybacks, which drove earnings per share of 13 cents, 2 cents above his estimate. He says he's not surprised that the stock is selling off this a.m. because expectations were pretty high going into the quarter, and the stock is very volatile anyway. He notes that whenever the stock moves so much in either direction he's not surprised. He thinks the stock could go lower, and points to keeping his $31 target but says he may be interested if the stock trades under $30.
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