UPDATE: Benchmark Reduces PT to $9 on The Pep Boys - Many Moe & Jack Ahead of Q1

Benchmark reiterates its Hold rating on The Pep Boys - Many Moe & Jack

but lowers its price target to $9 a share. Benchmark notes, "Pep Boys is expected to report Q1 earnings Thursday, June 7 before the market open. This would be management's first conference call since the deal with the Gores Group fell apart. The business appears to have deteriorated both on revenue and margin. We believe consumers have been purchasing less higher-margin discretionary items. We expect EPS to be in line with our estimate of $0.02. Our $9 price target is based on 5.2x 2012E EBITDA. We maintain our Hold rating as we look for clarity as to what is driving the deterioration in business." PBY closed at $8.75 on Tuesday.