Piper Sandler has raised the price target for Boot Barn (NYSE:BOOT) Holdings Inc (NYSE: BOOT) shares to $147 from the previous target of $144 while retaining an Overweight rating on the stock.
The firm's decision comes in the wake of Boot Barn's robust first-quarter performance, which surpassed estimates and provided forward guidance that exceeded expectations.
Boot Barn's recent financial results have shown a return to positive comparable store sales, with 11 of the past 14 weeks registering growth, despite facing challenging comparisons from the previous year.
The company experienced a brief period of softer sales in July due to temporary issues, which have since been resolved.
The revised price target reflects confidence in Boot Barn's outlook, as the company's raised guidance appears conservative. The outlook is supported by a combination of factors, including more favorable comparisons in the future and internal growth drivers that are expected to continue propelling the business forward.
The company's product margins have been improving due to internal efforts, contributing to the optimistic assessment. Furthermore, Boot Barn is on track to achieve its target of 15% annual growth in the number of its stores, indicating a strong expansion strategy.
Meanwhile, Craig-Hallum maintained a positive stance on the company, raising the price target from $120 to $150, and forecasting positive same-store sales and potential upward revisions of earnings per share for fiscal years 2025 and 2026.
Simultaneously, Baird kept a Neutral rating but increased its price target for Boot Barn to $132, citing a recent upturn in comparable store sales and the company's ongoing expansion strategy.
Williams Trading also raised its price target for Boot Barn to $150, maintaining a Buy rating, while noting signs of improvement in the western boots and apparel sector.
However, UBS downgraded Boot Barn's stock from a Buy to a Neutral rating, reducing its price target to $125, citing that the market already expects the company's improved same-store sales growth. On a similar note, Benchmark raised its price target for Boot Barn to $140, maintaining a Buy rating, following a reported 1.4% increase in comparable store sales for the first quarter of fiscal year 2025.
InvestingPro Insights
With Piper Sandler raising their price target for Boot Barn Holdings Inc (NYSE: BOOT), investors might take interest in the latest metrics and analysis provided by InvestingPro. As of the last twelve months leading up to Q4 2024, Boot Barn has a market capitalization of $3.53 billion and a P/E ratio that stands at 23.84, which aligns closely with the adjusted P/E ratio for the same period. This valuation suggests that while the stock isn’t cheap, it's not excessively priced given the company’s earnings.
The company's revenue has seen a slight increase of 0.57%, indicating stable growth. However, the quarterly revenue growth experienced a decline of 8.74%. Despite this, the gross profit margin remains strong at 36.86%, reflecting the company's ability to maintain profitability. Additionally, with a return on assets of 9.12%, Boot Barn demonstrates effective use of its assets to generate earnings.
InvestingPro Tips highlight that analysts are optimistic about Boot Barn's profitability, with eight analysts revising their earnings upwards for the upcoming period and predicting the company will be profitable this year. This aligns with the company's recent price performance, which has seen a significant uptick over the last six months, with a total return of 36.55%. Moreover, the company's stock price movements have been quite volatile, which could present opportunities for investors with a higher risk tolerance.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips on Boot Barn, providing deeper insights into the company's financial health and stock performance. Discover more expert tips and in-depth metrics at: https://www.investing.com/pro/BOOT.
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