UPDATE: Stifel Nicolaus Downgrades hhgregg to Hold on Worsening Comps

Stifel Nicolaus reduced its rating on hhgregg HGG from Buy to Hold and removed its $15 price target. Stifel Nicolaus said, "While we were below Street consensus on 1Q12 topline, the deleverage to worse comp is the compelling new information in HGG pre-announcement. We are loathe to downgrade shares from Buy to Hold on the day of a substantial sell-off, but we believe that the new information from HGG suggests something has changed in the model. 1Q12 pre-announcement equals worst two-year stacked comp in company's public history, but this time, unlike 2009, two-year OM reduction is far worse (1Q12 OM down 325 bp on two-year stack, 1H09 similar two-year comp but averaged down 180 bp OM on two-year stack)." hhgregg closed at $11.54 on Tuesday.