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Investing.com - TD Cowen has reduced its price target on Academy Sports & Outdoors Inc. (NASDAQ:ASO) to $47.00 from $48.00 while maintaining a Hold rating on the stock.
The firm cited a shift in focus from improving comparable sales to uncertainty in the company’s second-half margin profile as the reason for the adjustment.
TD Cowen noted that its modeling for Academy Sports’ second half of the year requires significantly less selling, general and administrative (SG&A) expense deleverage than the first half, along with year-over-year gross margin increases supported by planned large average unit retail (AUR) increases.
The research firm highlighted that Academy Sports faces a "delicate" balance between units per transaction (UPT) and average unit retail given the retailer’s exposure to lower- to middle-income consumers.
TD Cowen’s new $47 price target represents 8 times the firm’s fiscal year 2026 earnings per share estimate, with the firm also noting that Academy’s implied comparable sales guidance for the second half remains wide, which "highlights uncertainty."
In other recent news, Academy Sports and Outdoors reported its financial results for the second quarter of 2025, showing mixed outcomes. The company achieved net sales of $1.6 billion, marking a 3.3% increase compared to the previous year. However, the earnings per share (EPS) came in at $1.94, which was below the anticipated $2.16, resulting in a 10.19% negative surprise. Additionally, Truist Securities adjusted its price target for Academy Sports to $50, up from $47, while maintaining a Hold rating on the stock. This adjustment was influenced by Academy Sports’ first positive comparable sales since 2021, with a 0.2% increase in the second quarter, surpassing the expected -0.8%. These developments highlight the varied performance metrics and analyst perspectives surrounding Academy Sports in recent times.
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