UPDATE: Piper Jaffray Lowering Price Target On hhgregg

Piper Jaffray is out with a research report on hhgregg, Inc. (NYSE: HGG) and is lowering its price target to $14 from $16, but it has a Neutral rating on shares after earnings.

In a note to clients, Piper Jaffray writes, "We are maintaining our Neutral rating and lowering our PT to $14 from $16 following yesterday's Q1 results. While reported sales and EPS figures missed expectations, we believe shares over-reacted to the downside. The biggest negative outlier relative to expectations for Q1, in our opinion, was the decline in new store productivity to ~70% -- which can largely be attributed to timing issues on new store openings. All in, while remaining guarded on current trends in video sales, we may become more positive on HGG shares if we become more comfortable with new store productivity returning to a normalized rate of close to 100% and stabilization in video or appliance category trends."

Shares of HGG lost $1.39 yesterday to close at $11.11.