Deutsche cut Circuit City's (CC) target to $3.50 today and reiterated its HOLD following CC's unencouraging quarterly results and outlook . However, the Hold might as well be a Sell: Some signs of improvement, but a long way to go . CC did beat 1Q09 (Feb 09) consensus estimates on better then expected cost controls, though sales were below plan. Internal metrics are also showing some sequential improvements in conversion rates and attachment rates, but still down y/y. However, the sales and gross margin weakness are offsetting these improvements. Continued share losses and negative profitability, along with possible industry pressures looming . Deutsche reiterates HOLD on Circuit City (CC), target price from $4.00 to $3.50. See Also: Best Buy (BBY) Could Get Crushed By Wal-Mart (WMT) ( BBY , CC , WMT ) Blockbuster: We're Not Idiots; We'll Only Buy Circuit City If It Makes Us Money ( BBI , CC ) ...
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Deutsche cut Circuit City's (CC) target to $3.50 today and reiterated its HOLD following CC's unencouraging quarterly results and outlook . However, the Hold might as well be a Sell: Some signs of improvement, but a long way to go . CC did beat 1Q09 (Feb 09) consensus estimates on better then expected cost controls, though sales were below plan. Internal metrics are also showing some sequential improvements in conversion rates and attachment rates, but still down y/y. However, the sales and gross margin weakness are offsetting these improvements. Continued share losses and negative profitability, along with possible industry pressures looming . Deutsche reiterates HOLD on Circuit City (CC), target price from $4.00 to $3.50. See Also: Best Buy (BBY) Could Get Crushed By Wal-Mart (WMT) ( BBY , CC , WMT ) Blockbuster: We're Not Idiots; We'll Only Buy Circuit City If It Makes Us Money ( BBI , CC ) ...