Susquehanna On Hibbett Sports: 'Buy The Stock.'

Although Hibbett Sports, Inc. HIBB has been late to enter the digital space, the initiatives planned by the company would likely result in revenue growth ahead, Susquehanna’s Sam Poser said in a report. He initiated coverage of the company with a Positive rating and a price target of $45.

Set To Enter The Digital Age

Hibbett Sports is among the last retailers to have an ecommerce platform. In fact, the company does not even have an intranet, which has resulted in “many missed sales,” with the lack of a system to get an item from one store to a customer in another, Poser mentioned. He added, however, that this would about to change.

Hibbett Sports would have ship to store capabilities and a CRM by late 3Q17. Ship to home capabilities would be in place in 4Q17 and full ecommerce capabilities would be rolled out around back to school of next year.

Although Hibbett Sports has been late to enter the digital age, “we believe the small market strategy, an industry leading real estate team, combined with the pending e-commerce platform will result in long-term profitable store and revenue growth beginning later this fiscal year,” Poser wrote. He further stated that conversion rates appear set to improve dramatically in 2H17.

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