According to Bank of America, it’s time to sell Kohl’s shares as consumer demand weakens from inflation, and after the retailer ends deal negotiations. Analyst Lorraine Hutchinson downgraded Kohl’s shares from neutral to underperforming as inflationary pressures cut into sales at the department store chain, according to a Thursday note. Hutchinson wrote, “We are downgrading Kohl’s back to Underperform to realign it with our negative outlook on the department store industry.” ,[We] Concerned about fundamentals but whether neutral was given the possibility of a take-out. With a deal out of the table, we see projections and risks to the stock.” Bank of America also lowered its target target by 48% from $26 to $50 due to a “tough macro picture.” After the stock closed Wednesday. The downgrade comes after Kohl’s last week said it ended talks of a deal with Franchise Group, the owner of Vitamin Shoppe, a decision that caused the stock to drop nearly 20%. Instead, the department store Chen said it would continue as a standalone company, and would consider a real estate sale, a decision Hutchinson is skeptical about. “It represents a change in tone for a more flexible stance, but We would look at any large leasing negatively. Although unlikely, it will add leverage in times of dwindling demand and worsening margins,” read the note. Kohl’s shares fell more than 2% in premarket trading Thursday. —CNBC’s Michael Bloom contributed to this report .