Hibbett Sports Upgraded On Improving Results

NEW YORK (AP) — Sales are likely improving at Hibbett Sports Inc., an analyst said Tuesday and upgraded the stock to "Outperform."

Raymond James analyst Dan Wewer wrote in a note to investors that he has "growing confidence" that sales in stores open at least one year, a key retail metric, and margins are "firming" so far in the third quarter.

That's a switch from August, when the company reported second-quarter profit fell 77 percent as sales slipped 6 percent to $123.1 million. At that time the company cut its fiscal 2010 guidance and Wewer downgraded the stock to "Market Perform" and set a target price of $18.

But store checks and feedback from suppliers indicate sales have improved sequentially since the beginning of the third quarter, Wewer said.

"It appears the sales pick-up is broad based across all merchandise categories," he wrote.

He upgraded the stock to "Outperform" and raised the price target to $21.

Shares rose $1.06, or 5.8 percent, to $19.32. The stock has traded between $10.06 and $22.39 during the past 52 weeks.