Boot Barn Holdings’ (BOOT) stock is up 10% on April 6 after analysts at Jefferies Financial Group (JEF) upgraded the stock to Buy from Hold previously, and placed a $195 price target on the shares.
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Corey Tarlowe, a top five-star rated analyst, wrote in a note to clients that the company’s valuation has reset from approximately 24 times to 16 times forward earnings, making the shares much more affordable than in the recent past.
BOOT stock also looks comparatively cheap now compared to the rest of the stock market, notes the analyst. Plus, the company’s execution and underlying demand trends remain intact, making BOOT stock an attractive option in the retail space.
Cowboy Boots and Buckles
“The stock has de-rated despite continued top-line resilience, sustained new store growth, and stable fundamentals. Despite macro fears, and following a recent selloff, we see more favorable risk-reward from here, with upside to earnings and the stock,” writes Tarlowe.
Boot Barn is a chain of retail stores that specializes in western paraphernalia such as cowboy boots and hats, as well as belt buckles and other items. The upgrade from Jefferies comes after BOOT stock has declined 21% this year.
Is BOOT Stock a Buy?
BOOT stock has a consensus Strong Buy rating among 13 Wall Street analysts. That rating is based on 13 Buy ratings issued in the last three months. The average BOOT price target of $239.45 implies 63% upside from current levels.
