UPDATE: Piper Jaffray Raises PT to $59 on Hibbet Sports: Margins Offset Weak Comps

Piper Jaffray reiterated its Neutral rating on Hibbet Sports

and raised its price target from $56 to $59. Piper Jaffray commented, "On Friday, Hibbett reported FQ2 EPS of $0.30, ahead of our $0.27 estimate and consensus of $0.28. The beat was driven by a 110bp expansion in gross margin, exceeding consensus by nearly 70bp. Same store sales increased 4.8%, short of our estimate of +5.5% and consensus of +6.1% led by accessories and apparel. … We have raised our price target slightly from $56 to $59 as we believe Hibbett has a long runway for new unit growth, consistent same-store sales and margin expansion opportunity, but are maintaining our Neutral rating as these are reflected in the current valuation, in our opinion." Hibbet Sports closed at $59.22 on Friday.