Baird analyst Jonathan Komp upgrades $Boot Barn Holdings (BOOT.US)$ to a buy rating, and maintains the target price at $167.
According to TipRanks data, the analyst has a success rate of 53.8% and a total average return of 13.3% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Boot Barn Holdings (BOOT.US)$'s main analysts recently are as follows:
Boot Barn's recent fiscal Q2 report surpassed expectations and indicated a positive trend, with the company not only exceeding projections but also raising future ones. This improvement was primarily driven by a notable increase in transaction growth. Additionally, the leadership change comes after a well-planned multi-year succession process.
Boot Barn's fiscal Q2 same-store-sales results were robust compared to market expectations, although earnings did not meet market forecasts mainly due to elevated incentive compensation and one-off legal expenses. The company is perceived to be regaining strong same-store-sales momentum, and it is approaching its target of a 20% earnings growth model.
Following the recent 20% decline in Boot Barn's share value, primarily attributed to the unexpected CEO change among other minor challenges which are not considered problematic, there is now perceived to be a more attractive risk/reward scenario. Confidence remains in Boot Barn's capacity for generating favorable relative earnings growth, bolstered by opportunities for unit expansion. It's noted that the company's valuation has fallen below the median of its peers, and there is a potential for significant upside within the next year, with limited further downside, which supports a more positive outlook.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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