Needham & Company Trims Numbers on Hibbett Sports (HIBB)

July 2, 2013 10:34 AM EDT
Get Alerts HIBB Hot Sheet
Price: $33.20 -2.78%

Rating Summary:
    4 Buy, 15 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Needham & Company lowered estimates and its price target on Hibbett Sports (NASDAQ: HIBB) from $63 to $61 to reflect a more conservative outlook for expense leverage. The firm maintained a Buy rating.

Analyst Sean McGowan comments, "Reviewing our forecast for HIBB's growth over the next few years, we have concluded that our estimates assumed an unrealistically high degree of expense leverage, especially in the face of additional spending for a new distribution center. We remain bullish on the shares, and believe HIBB will enjoy another decade or more of solid store expansion and cash flow growth. Our new price target of $61 assumes that a year from now, the shares will trade at a P/E of about 16.5x forward 12 month EPS, a slightly lower target multiple than we had previously used. We maintain our Buy rating. "

The firm trimmed FY 2013 EPS from $3.05 to $3.00 and FY 2014 EPS from $3.65 to $3.40.

For an analyst ratings summary and ratings history on Hibbett Sports click here. For more ratings news on Hibbett Sports click here.

Shares of Hibbett Sports closed at $55.77 yesterday.

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