Cautious Hold Rating on Academy Sports and Outdoors Amid Mixed Financial Performance and Macroeconomic Challenges

Academy Sports and Outdoors (ASO – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Robert Ohmes from Bank of America Securities reiterated a Hold rating on the stock and has a $55.00 price target.

Robert Ohmes has given his Hold rating due to a combination of factors including the mixed financial performance of Academy Sports and Outdoors. The company’s first quarter earnings per share fell short of expectations, primarily due to weaker comparable sales and increased selling, general, and administrative expenses. While there was some improvement in gross margins, the overall financial outlook remains cautious.
Additionally, the macroeconomic environment and tariff uncertainties pose challenges, despite a more positive merchandising outlook with Nike and potential benefits from higher-income customer traffic. Competitive pressures and softness in the core lower-to-middle income customer segment further contribute to the cautious stance. As a result, the price objective has been adjusted to reflect a lower sales forecast, reinforcing the Hold rating.