Shares of Pier 1 Imports went on sale today, falling as much as 13 percent, after a UBS analyst hit the comnpany with a “Sell” recommendation.
According to StreetInsider.com, analyst Michael Lasser said the Fort Worth-based home furnishings company faces a number of risks, including rivals “who offer products that are either less expensive or higher quality;” a shift in sales to its website which will erode profit margins; and limited financial ability to repurchase more shares.
The stock (ticker: PIR) was down 89 cents at $7.30 in afternoon trading. Lasser put a price target on the stock of $7.
Pier 1 shares have been under pressure much of the year, since the company announced in February that it had botched expense forecasts and dismissed its long-time chief financial officer.
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In September, the company said net income totaled $3.2 million for its fiscal second quarter, down from $9.2 million last year, and slashed its full-year guidance.