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On a positive note Banc of America raised its earnings estimates on Reebok for 2004 from $2.80 a share to $2.85 due to the cash redemption of some outstanding debt. They also raised 2005 numbers from $3.22 to $3.25 and reiterated their "buy" rating. Interestingly the new numbers seem a little low for 2004 based on management's guidance but the numbers for 2005 are close to the "aggressive" scenario I presented in my last post. I think it reaffirms that Reebok is undervalued at these prices.

On the downside they cut their twelve month price target(not that people should put a lot of stock in analyst reports but they are helpful) from $47 to $43. They cited "concerns for a weak European backlog and a potential slowdown in licensed apparel". They feel that both Nike and Dick's Sporting Goods are the two top picks in the apparel and footwear industry.

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