Big 5 Sporting Goods cut to sell at Deutsche Bank on weak consumer spending

BOSTON, Jul 11, 2008 (Thomson Financial via COMTEX) -- DB | Quote | Chart | News | PowerRating -- Big 5 Sporting Goods Corp. was Friday downgraded to sell from hold at Deutsche Bank, which said the consensus view of a recovery is too optimistic as consumer spending remains weak.

"The likelihood of significant downside revisions over the next year, as well as Dick's likely move into Big 5's key markets, are the basis for our new sell rating," Deutsche Bank said in a note to clients.

Analyst Mike Baker said consumer spending will remain weak through the rest of 2008 and perhaps into 2009, pressuring spending on discretionary products like sporting goods.

As a result, Deutsche Bank reduced its 2008 earnings-per-share estimate to 70 cents from 75 cents, while analysts polled by Thomson Reuters, on average, estimate full-year earnings of 71 cents a share.

The brokerage also lowered its price target to $6 from $7.

Shares of Big 5, an El Segundo, Calif.-based sporting goods retailer, closed Thursday at $7.46. Greg Saulnier gs/vj

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