NEW YORK (AP) — A Morgan Stanley analyst on Thursday lowered her rating on Saks, saying some higher costs this year may pressure shares.

Kimberly Greenberger cut Saks Inc. to "Underweight" from "Equal-weight" and set a $10 price target, suggesting she thinks the stop will drop from current levels.

The company said Tuesday that it expects selling, general and administrative expenses to rise as a percentage of sales this year as it plans more marketing, tries to increase online sales and makes other investments.

In a client note, Greenberger cut her earnings estimate for the year ending in January 2014 to 39 cents per share from 50 cents per share. Analysts polled by FactSet expect profit of 44 cents per share.

The luxury department store's efforts to grow the business will benefit sales and profitability in the long term, but its additional spending may limit stock-market gains this year, Greenberger said.

Shares of Saks, which is based in New York, added 5 cents to $11.40 in afternoon trading. Shares have dropped about 4 percent over the past 12 months.