Paul Lejuez, an analyst from Citi, maintained the Buy rating on Academy Sports and Outdoors (ASO – Research Report). The associated price target remains the same with $55.00.
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Paul Lejuez has given his Buy rating due to a combination of factors that suggest a favorable risk/reward scenario for Academy Sports and Outdoors. Despite a somewhat disappointing first quarter with lower-than-expected comparable sales and earnings per share, management has adjusted its earnings guidance to reflect potential macroeconomic challenges and higher tariffs. This adjustment, along with easing comparisons in the second quarter due to previous warehouse disruptions, provides a more realistic outlook.
Furthermore, the expansion of Nike and Jordan assortments, along with the full rollout of RFID technology, are expected to limit downside risks in the second half of the fiscal year. With shares trading at an attractive free cash flow yield and a relatively low price-to-earnings multiple, Lejuez sees potential for sequential improvement in sales and believes the current stock price offers a compelling investment opportunity.
According to TipRanks, Lejuez is a 5-star analyst with an average return of 9.0% and a 56.88% success rate. Lejuez covers the Consumer Cyclical sector, focusing on stocks such as PVH, American Eagle, and Dick’s Sporting Goods.
In another report released on June 9, Telsey Advisory also maintained a Buy rating on the stock with a $60.00 price target.
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