Analyst Christopher Nardone of Bank of America Securities reiterated a Buy rating on Boot Barn (BOOT – Research Report), reducing the price target to $160.00.
Christopher Nardone has given his Buy rating due to a combination of factors, including the belief that Boot Barn’s stock is currently undervalued due to concerns over potential sales slowdowns and exposure to Chinese tariffs. He views the current market pullback as an opportunity to invest in a company with strong growth potential, particularly in a retail category that is experiencing secular growth.
Furthermore, Nardone highlights Boot Barn’s strategic efforts to reduce its reliance on Chinese production, which has already decreased from 50% to 30%, and the potential for increased production in Mexico, which is not subject to tariffs. He also notes the defensive nature of the western boot category, which may be less sensitive to price changes due to its necessity for core customers. Despite lowering the future earnings per share estimate, Nardone maintains a positive outlook with a price objective of $160, reflecting confidence in the company’s long-term growth prospects.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $181.00 price target.