Boot Barn Stock Up On Analyst Revision: But Retail Stays Cautious

Shares of Boot Barn Holdings Inc. ($BOOT) were up 1.30% on Wednesday following a price target revision by BofA based on the company’s recent positive preliminary third-quarter results, but retail sentiment stayed cautious.

Boot Barn said earlier in the week it expects Q3 net sales of about $608.2 million, representing 16.9% growth over the prior year. Its same-store sales growth is expected to be about 8.6%, with retail store same-store sales growth at about 8.2% and e-commerce same-store sales growth at about 11.1%.

Net income per diluted share is expected at about $2.43 compared to net income per diluted share of $1.81 in the prior year period. Included in net income per diluted share is an estimated $0.22 benefit related to the CEO transition.

Additionally, the company opened 13 new stores in the third quarter, or 39 stores year-to-date, bringing its total store count to 438.

BofA raised the firm's price target to $192 from $187 with a ‘Buy’ rating, Fly.com reported. The firm was  "encouraged" by the company's positive earnings pre-announcement at the ICR Conference. The firm is raising its FY24 EPS view by 20c to $5.73 to reflect stronger sales and slightly better margins and increasing its price target to reflect the higher estimates, said the report.

On Stocktwits, retail sentiment stayed ‘bearish’ while message volumes remained high.

BOOT sentiment meter and message volumes on Jan 15

JPMorgan earlier also raised the firm's price target to $200 from $188 with an ‘Overweight’ rating based on the company's guidance that pointed to incremental upside. While Jefferies analyst Corey Tarlowe increased the price target to $175 from the previous target of $170, with a ‘Buy’ rating.

Boot Barn is a lifestyle retailer of western and work-related footwear, apparel, and accessories for men, women, and children. 

Boot Barn stock is up 0.14% year-to-date.

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