The firm comments, "A series of operational missteps, a changing business model, and now, the departure of CEO Jeremy Andrus further impairs near- and medium-term visibility. Competitive pressures continue to intensify within the space, which could further pressure the earnings model. As such, we are taking a more conservative view on estimates for the time being. A 6.6x 2012 P/E, compared to 20.7x P/E for the high growth retail peer group, is the least expensive in our coverage universe, but at this stage, earnings visibility is so limited that even an inexpensive valuation remains unattractive, in our view."
These analysts that cut their price targets in half when earnings come in within their expected range, with no additional forward guidance provided by the company, and without any multiple comps out there to support a significantly lower multiple are worse than the internet stock bucket shops of the late 90s. What a joke.