Analyst Paul Lejuez of Citi maintained a Hold rating on Carter’s (CRI – Research Report), with a price target of $45.00.
Paul Lejuez has given his Hold rating due to a combination of factors impacting Carter’s current and future performance. Despite a positive fourth-quarter earnings surprise driven by stronger U.S. direct-to-consumer sales, the company’s forward guidance for fiscal year 2025 remains weak. This is attributed to ongoing structural challenges in the U.S. market, where recent sales trends have been declining, and management’s conservative outlook for the first quarter.
Additionally, there is uncertainty surrounding Carter’s business strategy, as management has not committed to closing underperforming stores, and the company is in the midst of a CEO search. The expectation of muted growth in U.S. wholesale and a cautious view on management’s guidance for the latter half of the year further contribute to the Hold rating. Consequently, Lejuez has lowered the target price to $45, reflecting reduced earnings estimates and a lower valuation multiple due to these structural headwinds.
According to TipRanks, Lejuez is a 5-star analyst with an average return of 8.5% and a 55.70% success rate. Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Nike, Birkenstock Holding plc, and Deckers Outdoor.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $48.00 price target.