Market Overview

BofA Raises Hibbett Sports Price Target After Q3, Says Retailer Well-Positioned For Holidays

BofA Raises Hibbett Sports Price Target After Q3, Says Retailer Well-Positioned For Holidays

Hibbett Sports, Inc. (NASDAQ: HIBB) reported robust results for the fiscal third quarter, with little impact of government stimulus, and appears poised to perform well during the holiday season, according to BofA Securities.

The Hibbett Sports Analyst: Alexander Perry maintained a Buy rating on Hibbett Sports and raised the price target from $50 to $55.

The Hibbett Sports Thesis: The company’s substantial earnings upside in Friday's third-quarter report was driven by same-store sales, with brick-and-mortar growth of 17.5% and e-commerce growth of 50.7%, Perry said in a Monday note. 

Government stimulus had a “minimal impact,” with same-store sales being driven by the following, the analyst said: 

  • New customer acquisition driven by omnichannel initiatives
  • Strong product cycle, led by Nike Inc (NYSE: NKE)
  • Shift in spending from travel, leisure and entertainment into premium athletic footwear and comfort apparel

“Gross margin of 38.1% (vs. our 32.9%) benefited from a low promotional environment and leverage of store occupancy expense partially offset by higher mix of e-comm. sales,” he said.

The company is “taking share in a challenging COVID-19 environment,” Perry said. 

The analyst raised the earnings estimate for the fiscal fourth quarter from 70 cents per share to $1.06 per share to reflect high quality inventory, strong Nike product cycle, little impact from shutdowns due to the second wave of infections and continued gross margin expansion, according to BofA. 

HIBB Price Action: Shares of Hibbett Sports were trading 1.36% higher to $43.22 at last check Monday. 

Public domain photo via Wikimedia. 

Latest Ratings for HIBB

Aug 2020Credit SuisseMaintainsUnderperform
Jul 2020B of A SecuritiesUpgradesUnderperformBuy
May 2020SusquehannaUpgradesNeutralPositive

View More Analyst Ratings for HIBB
View the Latest Analyst Ratings


Related Articles (HIBB)

View Comments and Join the Discussion!

Posted-In: Alexander Perry BofA SecuritiesAnalyst Color Price Target Reiteration Small Cap Analyst Ratings

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at