Christopher Nardone, an analyst from Bank of America Securities, reiterated the Sell rating on Carter’s. The associated price target was lowered to $25.00.
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Christopher Nardone has given his Sell rating due to a combination of factors impacting Carter’s financial outlook. The company reported a second-quarter earnings per share that fell short of expectations, primarily due to increased selling, general, and administrative expenses. This has raised concerns about the company’s ability to manage its margins effectively amidst ongoing tariff challenges and necessary investments to sustain improved revenue trends.
Additionally, Carter’s did not provide guidance due to a leadership transition and persistent tariff uncertainties, which adds to the cautious outlook. The new CEO’s strategic initiatives, such as focusing on higher-quality products and rationalizing the store fleet, are promising but may take time to yield results. Furthermore, the anticipated pricing adjustments to counteract tariff impacts might be difficult to implement without affecting consumer demand, leading to a lowered price objective for the stock.