Kenanga Research has downgraded department store operator, Parkson Holdings, to underperform at RM2.66, and had cut its target price to RM2.48 from RM2.79.

This was after the company reported lower-than-expected net profit for its third quarter ended March 31, 2014.

Parkson net profit was RM55 million, down 28 per cent from a year ago, despite recording a slightly higher revenue of RM958 million for the quarter.