Lazard cuts 8 U.S. retailers, says sell Saks

Nov 4 (Reuters) - Lazard Capital Markets downgraded eight retailers to "hold" from "buy", including apparel retailers American Eagle Outfitters Inc (AEO.N: Quote, Profile, Research) and Guess Inc (GES.N: Quote, Profile, Research), citing the stocks' dramatic out-performance since March.

The brokerage also cut upscale department store operator Saks Inc (SKS.N: Quote, Profile, Research) to "sell" from "hold".

The retail, apparel and footwear stocks have risen 180 percent since March while the S&P 500 index .SPX is up only 55 percent in the same period, the brokerage said, adding that the stocks are now discounting a significant earnings recovery.

"No one seems to be able to find a good short idea. This is usually a good time to take some chips off the table," analysts led by Todd Slater wrote in a note to clients.

The analysts said the sentiment in the market is shifting to "sell the news," as investors are moving to a more profit-taking mentality and are selling even into rising earnings outlooks.

The analysts kept their "buy" rating on Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research) and off-price retailer TJX Cos Inc (TJX.N: Quote, Profile, Research).

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(Reporting by Viraj Nair and Vidya Lakshmi in Bangalore; Editing by Deepak Kannan)

((viraj.nair@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: viraj.nair.reuters.com@reuters.net)) Keywords: RETAILAPPAREL/RESEARCH LAZARDCAPITALMARKETS

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