RAPAPORT... Shares in Zale (NYSE: ZLC) closed 18 percent lower on June 10, 2011 at $5.13 after a day of heavy trading. Still, shares were 109 percent higher at the close from one year ago. Today's sell-off followed Bank of America's downgrade on Zale from "buy" to “neutral.” Bank of America did, however, raise the target price to $6.75.
In a report to clients this morning, Bank of America Merrill Lynch wrote that Zale offered limited upside after the stock's recent rally. Quarter-to-date, Zale's shares were trading 70 percent higher, versus a drop of 5 percent for the S&P500 and decline of 6 percent for the S&P Retail index.
Additional reporting by AcquireMedia.