Paul Lejuez, an analyst from Citi, maintained the Hold rating on Academy Sports and Outdoors. The associated price target is $50.00.
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Paul Lejuez has given his Hold rating due to a combination of factors affecting Academy Sports and Outdoors. The company’s third-quarter earnings are expected to fall short of consensus estimates, primarily due to slightly weaker comparable sales. Although the addition of popular brands like Nike and Jordan and improved execution have positively influenced sales trends, warmer temperatures in Texas have limited potential gains for the third quarter.
Despite these challenges, there are positive signs for the fourth quarter, as cooler weather may boost seasonal demand. However, Lejuez remains cautious because of the low visibility into sustainable positive comparable growth, even with several favorable factors such as new store openings and improved inventory levels. The current stock price reflects a balanced risk-reward scenario, leading to the Hold rating.
In another report released on November 21, TR | OpenAI – 4o also downgraded the stock to a Hold with a $45.00 price target.