Partylite Falls on Hard Times - Loses Momentum

Avondale Partners analyst Douglas M. Lane downgraded Blyth shares to “Market Underperform” from “Market Perform” and lowered his price target to $17 from $20.Lane said the company’s U.S. PartyLite direct selling business, which accounts for about one-third of Blyth’s sales, has fallen on hard times.

“In our experience, it is tough to turn around a large direct selling business that has lost momentum like PartyLite U.S.,” Lane wrote in a client note. “The company’s recent decision to exit its wholesale businesses only increases PartyLite U.S.’s importance to the overall business results.”

Blyth Declines on Analyst Downgrade