Carter’s (CRI – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Christopher Nardone from Bank of America Securities maintained a Sell rating on the stock and has a $41.00 price target.
Christopher Nardone has given his Sell rating due to a combination of factors impacting Carter’s financial outlook. The macroeconomic environment remains uncertain, which poses challenges to consumer spending, particularly for Carter’s core demographic with lower average household incomes. This uncertainty could hinder sales growth, especially during periods of geopolitical instability.
Additionally, Carter’s U.S. Retail business, which constitutes a significant portion of sales, is struggling with driving store traffic. While management is implementing strategies such as improved brand marketing and better inventory management, the effectiveness of these initiatives remains to be seen. Furthermore, the company’s pricing strategy is uncertain due to the lack of visibility into consumer spending trends and potential tariff impacts on the children’s apparel category. These factors collectively contribute to the cautious outlook and the Sell rating on Carter’s stock.