It has been yet another day to forget for shareholders of embattled Myer Holdings Ltd (ASX: MYR).
In late afternoon trade the department store operator's shares are down over 7% to 54.2 cents and are hovering just a touch above the all-time low of 54 cents they made earlier in the day.
Why are Myer's shares sinking lower?
Today's decline appears to be related to a broker note that was released by Deutsche Bank this morning.
That note revealed that the investment bank's analysts have not only downgraded the retailer's shares to a sell rating, but slashed their price target to a lowly 45 cents.
The broker made the move after Myer's latest dismal trading update and believes that its sales decline is not going to be easily fixed. In addition to this, Deutsche appears concerned over the stress its balance sheet is under now.
Lastly, any hopes that a takeover bid might be a saving grace has been dismissed by Deutsche's analysts. They predict that were a takeover bid to materialise, it would be at a discount to the then share price.
Last week Premier Investments Limited (ASX: PMV) requested access to Myer's share registry so that it could call an extraordinary general meeting. Expect more news relating to this to break over the coming weeks.
