UPDATE: Williams Capital Group Downgrades Sotheby's to Perform/Hold

Williams Capital Group has published a research report on Sotheby's (NYSE: BID) and has downgraded the company from Outperform/Buy to Perform/Hold to reflect the firm's expectations of a decline in sales and earnings growth through 2012.

In the report, Williams Capital Group writes, "We are downgrading Sotheby's (NYSE: BID) to a Perform/Hold rating from an Outperform/Buy rating. We are reducing our price target to $34.50 from $45.00. Our 2012 diluted earnings per share estimate has been reduced to $2.31, down from $3.01. We expect Sotheby's to experience a decline in sales and earnings in 2012 and continued weak auction margins. We question the ability of the company to fully benefit from the existing strength of the global art market. The global art market has a very difficult comparison and may fail to generate sales growth in 2012. We are increasingly concerned that a fight for market share with Christie's may intensify in 2012."

Williams Capital Group has also lowered the price target from $45 to $34.50 on Sotheby's, which is currently trading up $0.53 from yesterday's $36.95 closing price.