UPDATE: Bank of America Downgrades Hibbett Sports to Neutral, Lowers PT on Expense Ramp-Up to Mute EPS Growth

In a report published Tuesday, Bank of America analyst Rafe Jadrosich downgraded the rating on Hibbett Sports HIBB from Buy to Neutral, and lowered the price target from $55.00 to $47.00. In the report, Bank of America noted, “We are downgrading Hibbett Sports to Neutral (from Buy) and lowering our price objective to $47 (from $55) given a more conservative industry same-store sales outlook coupled with HIBB's expected step-up in expenses next year, which should pressure EPS growth. Our PO is supported by 16-17x our new F2016E EPS of $2.90 (was $3.00), a slight discount to its historical range of 17-18x.” Hibbett Sports closed on Monday at $43.66.