UPDATE: Piper Jaffray Downgrades Big 5 Sporting Goods Corporation on Multiple Negative Factors
In a report published Tuesday, Piper Jaffray analyst Sean P. Naughton downgraded the rating on Big 5 Sporting Goods Corporation (NASDAQ: BGFV) from Overweight to Neutral, and lowered the price target from $25.00 to $17.00.
In the report, Piper Jaffray noted, “We are downgrading shares of BGFV from Overweight to Neutral as a sluggish retail environment, slowing employment growth in California and increasingly difficult comparisons are likely to outweigh the company's merchandising initiatives and margin improvements. California accounts for half of Big 5's store base and employment growth in recent months, most notably in construction jobs, has slowed and in fact July was the slowest since April 2012. Against this backdrop, we see less upside to estimates and we expect the path to the historic 6-8% operating margin will take longer than we had initially anticipated.”
Big 5 Sporting Goods Corporation closed on Monday at $17.00.
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