On Friday, Baird maintained a Neutral rating on Boot Barn (NYSE:BOOT), but raised its price target on the stock to $132 from $100. The firm's decision came after meetings with the company's management, including the CEO and CFO, at Baird's Global Consumer, Technology & Services (CTS (NYSE:CTS)) Conference earlier in the week.
The discussions revealed a positive outlook based on a recent uptick in comparable store sales (comps) through May, which has been attributed to strong performance in certain product categories such as denim and country lifestyle.
The company's recent performance marks a significant turnaround, with comps rising after six consecutive quarters of negative figures. This rebound has increased confidence in Boot Barn's ability to maintain higher unit volumes and continue its strategy of approximately 15% annual unit expansion. In light of these developments, Baird has adjusted its forecasts for the company's first and second fiscal quarter comps and earnings per share (EPS), while opting to remain cautious about the second half of the year.
Baird's updated stance reflects an acknowledgment of Boot Barn's faster potential return to a 20%+ annual EPS growth rate. The analyst's comments suggest that while there is an optimistic view of the company's near-term prospects, Baird is still advising a watchful approach, recommending investors wait for a more opportune moment to invest.
The price target adjustment to $132 indicates Baird's revised expectation of Boot Barn's stock value, taking into account the recent positive developments and the company's growth trajectory. Boot Barn's management's bullish tone at the conference appears to have played a key role in Baird's reassessment of the stock's prospects.
Boot Barn, known for its western and work-related footwear, apparel, and accessories, seems to be experiencing a period of growth as it capitalizes on favorable market conditions and strategic expansion efforts.
In other recent news, Boot Barn Holdings Inc. has been the focus of multiple analyst reviews. Craig-Hallum maintained a positive stance on Boot Barn, increasing the price target from $120 to $150, in response to stronger-than-expected same-store sales (SSS). The firm anticipates this encouraging sales performance to lead to upward revisions of earnings per share (EPS) forecasts for fiscal years 2025 and 2026.
Meanwhile, TD Cowen raised its price target for Boot Barn to $145, reiterating a Buy rating due to a positive trend in comparable store sales and strategic store expansion. BTIG also increased Boot Barn's price target to $150 from $125, maintaining a Buy rating and revising the company's first fiscal quarter EPS estimate to $1.15 from $0.99.
On the other hand, Citi reaffirmed its Buy rating on Boot Barn with a consistent price target of $122, following investor meetings that addressed the company's growth strategies and factors influencing margin growth.
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