Robert Ohmes, an analyst from Bank of America Securities, maintained the Hold rating on Academy Sports and Outdoors. The associated price target remains the same with $55.00.
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Robert Ohmes’s rating is based on several factors influencing Academy Sports and Outdoors’ current market position. The company has experienced a slight decline in comparable sales in August, attributed to fewer promotions and a delayed hunting season start. Despite this, there is potential for growth with the expansion of Nike and Jordan brand offerings, which could enhance premium product allocations.
Additionally, e-commerce sales have shown strong growth, yet there remains a softness in ammunition sales, which is expected to continue affecting overall sales until next year. The company is also benefiting from increased traffic from higher-income households, which offsets declines in lower-income segments. While new store openings present a growth opportunity, the majority of these are in existing markets, suggesting a more cautious expansion strategy. These mixed signals contribute to the Hold rating, reflecting a balanced view of potential growth and existing challenges.
In another report released on September 30, Barclays also initiated coverage with a Hold rating on the stock with a $51.00 price target.