Analyst cuts Big 5 ranking to 'sell'
UBS downgraded Big 5 Sporting Goods Corp (Nasdaq: BGFV) to "sell" from "neutral," saying a recent rise in the sporting goods retailer's stock price was inconsistent with a deteriorating fundamental outlook for the company.
Big 5 Sporting shares, which gained nearly 68 percent through Sept. 16 after hitting a 52-week low of $6.50 in July, fell as much as 14 percent in morning trading on Sept. 17.
"The consumer environment in California continues to weaken, and competitive pressures for Big 5 Sporting should intensify significantly as Dick's Sporting Goods Inc. expands further into the western United States," UBS wrote in a client note.
The brokerage said it remained concerned with prospects for Big 5 Sporting over the next several quarters. UBS has a price target of $8 on the shares of the company.
Big 5 Sporting shares, which fell to a low of $9.40 earlier, pared some loss and closed down $0.66 at $10.25 on Sept. 17.
S&P updates Collective Brands' outlook
Collective Brands (NYSE: PSS), parent of Saucony and Hind, said it was pleased with the action taken by Standard & Poor's in revising its outlook to stable from negative and affirming the Company's credit ratings.
The outlook revision reflected the announcement that the monetary award against Collective Brands in the adidas trademark infringement case has been reduced to $65.3 million from $305 million.
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