Analyst Robert Ohmes of Bank of America Securities reiterated a Hold rating on Academy Sports and Outdoors, boosting the price target to $58.00.
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Robert Ohmes has given his Hold rating due to a combination of factors influencing Academy Sports and Outdoors’ performance. The company’s third-quarter earnings per share exceeded expectations, primarily due to an improved gross margin driven by merchandise margin benefits and strategic pricing adjustments. However, the overall comparable sales showed a slight decline, with a decrease in customer traffic despite an increase in the average transaction value.
Looking ahead, while there is optimism about the company’s future earnings potential and store expansion plans, the growth in new store openings is expected to remain flat compared to previous years. Additionally, while the merchandising outlook appears positive with partnerships like Nike and Jordan, there are concerns about competitive pressures and macroeconomic uncertainties, including tariff impacts. These mixed signals have led to a cautious stance, resulting in the Hold rating, as the potential upside is balanced by these risks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $59.00 price target.
ASO’s price has also changed moderately for the past six months – from $44.370 to $53.070, which is a 19.61% increase.