Jefferies Ups PT on hhgregg (HGG) to $14, Says Q2 Benefited from Promos, Likes New e-Commerce Website
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Price: $0.23 --0%
Rating Summary:
1 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 53
Rating Summary:
1 Buy, 8 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 53
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Jefferies boosted its price target on hhgregg, Inc. (NYSE: HGG) from $12 to $14, while keeping a Hold rating on the stock, following quarterly results.
The firm noted that a lot of sales upside for hhgregg in the second-quarter was driven primarily by promotion. Video segment reported a 4 percent improvement in comps, thanks to promotions, reversing a 20.6 percent slide in the first quarter.
Jefferies has some reservations about hhgregg continuing to hold an advantage with promotions heading into the holiday 2011 shopping season.
Overall, Jefferies commented, "execution appears better this quarter with the launch of an improved website, better sales force segmentation in store, expanded product assortment in computing and better close rates."
In TVs, hhgregg did a great job in the larger screen sizes with IPTV and 3DTVs seeing double-digit gains in the second quarter. Commenting, "The company is also experiencing better close rates as it has a dedicated sales effort in store for this product category."
Jefferies is also impressed with hhgregg's expansion into e-Commerce with an improved, user-friendly website.
On the results, fiscal 2012 EPS moves from $1.17 to $.40, while 2012 is nudged slightly higher, from $1.40 to $1.50.
For more ratings news on hhgregg click here and for the rating history of hhgregg click here.
Shares of hhgregg closed at $14.01 yesterday.
The firm noted that a lot of sales upside for hhgregg in the second-quarter was driven primarily by promotion. Video segment reported a 4 percent improvement in comps, thanks to promotions, reversing a 20.6 percent slide in the first quarter.
Jefferies has some reservations about hhgregg continuing to hold an advantage with promotions heading into the holiday 2011 shopping season.
Overall, Jefferies commented, "execution appears better this quarter with the launch of an improved website, better sales force segmentation in store, expanded product assortment in computing and better close rates."
In TVs, hhgregg did a great job in the larger screen sizes with IPTV and 3DTVs seeing double-digit gains in the second quarter. Commenting, "The company is also experiencing better close rates as it has a dedicated sales effort in store for this product category."
Jefferies is also impressed with hhgregg's expansion into e-Commerce with an improved, user-friendly website.
On the results, fiscal 2012 EPS moves from $1.17 to $.40, while 2012 is nudged slightly higher, from $1.40 to $1.50.
For more ratings news on hhgregg click here and for the rating history of hhgregg click here.
Shares of hhgregg closed at $14.01 yesterday.
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