J. Crew Group may have a solid following among consumers, with a strong product lineup and brand identity, but BMO Capital said Wednesday that the retailer may have maxed out its growth opportunities for now.
THE OPINION: Analyst John Morris said J. Crew has delivered above-average returns recently as it captured market share from department stores but its strengths are already recognized in its stock price. And the company faces a tough second half of the year if the overall retail business slows.
THE STOCK: J. Crew's stock fell $1.96, more than 4 percent, to $42.73 in midday trading Wednesday. Morris lowered his rating on the company to "Market Perform" from "Outperform" and lowered his price target from $55 to $48. He also lowered its 2010 guidance to $2.45 from $2.50 and 2011 estimate to $2.82 from $2.92.
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