Sears shares fall after target cut

Goldman Sachs analyst Adrianne Shapira added the suburban Chicago company to the investment bank's "conviction sell list" while lowering the retailer's 12-month price target to $46 from $61.

"Sears is in the eye of today's consumer spending storm," Shapira told investors in a note, adding that company that operates Sears and Kmart stores is being hit by fewer big-ticket appliance purchases and falling clothing sales.

She also cut earnings-per-share estimates for the next three years, saying the company would likely earn $2.13 in 2008, down from $2.43; $1.57 in 2009, down from $2.27; and $1.75, down from $2.51.

Analyst surveyed by Thomson Reuters expect the retailer to earn $2.53, $1.77 and $1.75 per share during those respective periods.

"In today's jittery market environment investors carry little patience for flagging results, and quarterly (same-store sales) and operating profit trends will likely display sequential worsening," Shapira wrote.

Also Monday, Sears said Michael D. Collins joined the retailer as senior vice president of finance and is expected to succeed J. Miles Reidy as chief financial officer by the end of fiscal 2008.

Sears shares fell $3.05, or 4.3 percent, to $67.87 Monday.