Da Davidson Cuts Price Target on Big 5 Sporting Goods (BGFV), Lowers Valuation Assumption

DA Davidson is maintaining its Neutral rating on shares of Big 5 Sporting Goods (NASDAQ: BGFV), but is lowering its price target by $1 to $14 due to a slightly lower valuation assumption of 12x-13x it's FY12 EPS estimate of $1.11.

The lower valuation reflects BGFV's inconsistent performance in recent quarters as well continued macro economic pressures in the company's key western markets. The company has also not been benefiting from the broad strength in technical/premium footwear and apparel like a majority of its competitors have been experiencing.

The firm comments that, "While this partly reflects the company's positioning as a more of a value/convenience player, it will likely lead to underperformance over the near term, we believe."

For more ratings news on Big 5 Sporting Goods click here and for the rating history of Big 5 Sporting Goods click here.

Shares of Big 5 Sporting Goods closed at $12.22 yesterday.

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