UPDATE: Jefferies Reduces PT to $8 on hhgregg on Video and Notebook Slowdown

Jefferies reiterated its Hold rating on hhgregg HGG and reduced its price target from $11 to $8. Jefferies commented, "Q1 sales and preliminary EPS expectations came in worse than our below Street estimates. The 5.1% decline in comp store sales was driven by weak video comp store sales plus softness in notebooks and personal electronics. Although shares look “cheap,” soft sales and operating margin contraction likely means they stay cheap. Risks remain ahead of Window 8 launch." hhgregg closed at $11.54 on Tuesday.