UPDATE: Piper Jaffray Reiterates Neutral Rating, Lowers PT on Tilly's

In a report published Friday, Piper Jaffray & Co. reiterated its Neutral rating on Tilly's (NYSE: TLYS), but slightly lowered its price target from $13.00 to $12.00.

Piper Jaffray noted, “We are reiterating our Neutral rating on TLYS shares following the company's holiday update in which both sales and margins fell short of prior estimates. Shares are likely to be highly volatile over the next 12 months given mounting concerns around the action sports industry backdrop (maturation) and the impact on growth potential for Tillys. Our checks point to new unit performance that remains solid, on a relative basis, but we think the market will risk-adjust growth as sales trends slow. We are using a 13x multiple to reflect this risk, and on revised FY14 estimates, our price objective goes from $13 to $12.”

Tilly's closed on Thursday at $13.06.