Analyst Kevin Steinke from Barrington maintained a Buy rating on Superior Group of Companies (SGC – Research Report) and decreased the price target to $15.00 from $18.00.
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Kevin Steinke has given his Buy rating due to a combination of factors including Superior Group of Companies’ strategic positioning and potential for market share growth. Despite a modest decline in Q1/25 revenue and challenges such as economic uncertainty and tariff-related hesitancy, the company is well-positioned to capitalize on future opportunities. The Branded Products and Contact Centers segments, in particular, have shown resilience with strong customer retention and new business pipelines, suggesting potential for revenue growth once economic conditions stabilize.
Moreover, Superior’s commitment to investing in its wholesale and direct-to-consumer online channels, especially within the Healthcare Apparel segment, indicates a strategic focus on adapting to changing consumer behaviors. The company’s ability to leverage its competitive strengths in fragmented markets, such as the $24 billion domestic market for Branded Products and the $4 billion healthcare apparel market, further supports the Buy rating. Despite current economic headwinds, Superior’s strong balance sheet and aggressive market strategies position it well to gain market share and enhance shareholder value in the long term.
In another report released yesterday, D.A. Davidson also maintained a Buy rating on the stock with a $14.00 price target.