Deutsche Bank Discusses Big 5 Sporting Goods (BGFV)

Deutsche Bank is out with a research report on Big 5 Sporting Goods Corporation

, after it reported earnings. It has a $21.50 price target and a Buy rating. In a note to clients, Deutsche Bank writes, "The key to the results in our opinion was the improving comp trends. 3Q10 comps accelerated to +3.6% on a 2-yr basis from (2.0%) and (0.2%) in 1Q10 and 2Q10, and to (3%) on a 3-yr basis from (7.1%) and (7.8%) in 1Q01 and 2Q10, respectively. Store openings are also up significantly y/y, and BGFV plans to accelerate openings in FY11 from FY10. The downside is that BGFV feels these pre-opening expenses in the near-term a bit more than others in our coverage universe, which does weigh on SG&A." Shares of BGFV gained $1.02 yesterday to close at $14.57, a gain of 7.5%.