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Investing.com - TD Cowen raised its price target on Boot Barn (NYSE:BOOT) to $225.00 from $210.00 on Thursday, while maintaining a Buy rating on the western wear retailer. The new target sits between the analyst high target of $254 and low target of $142, with the stock currently trading at $192.49, which appears overvalued according to InvestingPro Fair Value metrics.
The firm cited Boot Barn’s "impressive" second-quarter performance, which exceeded both buy-side expectations and Street consensus estimates. TD Cowen noted that strong October sales and what it characterized as conservative guidance from the company create a "favorable set-up" for the stock. This performance is part of Boot Barn’s broader 16.7% revenue growth over the last twelve months, with a healthy gross profit margin of 38.03%.InvestingPro data reveals Boot Barn has delivered a remarkable 52.71% return over the past year. Subscribers can access 10+ additional ProTips and comprehensive metrics in Boot Barn’s Pro Research Report, available for 1,400+ US equities.
The research firm expressed encouragement about Boot Barn’s pricing power, highlighting that the retailer successfully implemented mid-single-digit percentage price increases on 59% of its merchandise mix with "low elasticity" in consumer demand. This pricing strategy has contributed to Boot Barn’s strong 18% return on equity and 12% return on invested capital.
TD Cowen also pointed to Boot Barn’s increased total addressable market (TAM) and store expansion opportunities as additional positive factors supporting the higher price target. The company has demonstrated its growth potential with an impressive 18% revenue CAGR over the past five years while operating with a moderate level of debt (debt-to-capital ratio of just 0.09).
The firm stated it remains confident that Boot Barn can maintain its 20% earnings per share (EPS) growth algorithm going forward, though it suggested monitoring price elasticity as the company makes pivots in its exclusive brands strategy. Current EPS stands at $6.39 with forecasts of $6.69 for fiscal 2026, and a reasonable PEG ratio of 1.02 suggests the stock is fairly valued relative to its growth rate.
In other recent news, Boot Barn Holdings Inc. reported impressive fiscal second-quarter earnings for 2026, exceeding analysts’ expectations. The company posted an earnings per share (EPS) of $1.37, surpassing the anticipated $1.27, while revenue reached $505.4 million, outpacing the projected $493.84 million. Piper Sandler raised its price target for Boot Barn to $220 from $218, citing the company’s strong second-quarter results and noting an 8.4% growth in comparable store sales, which exceeded consensus expectations. Additionally, BTIG increased its price target to $226 from $218, maintaining a Buy rating, and highlighted Boot Barn’s strong performance and ongoing momentum into the third quarter. These developments reflect a positive outlook from analysts, with Piper Sandler maintaining an Overweight rating on the company. Both firms underscored the retailer’s robust fiscal performance as a key factor in their revised assessments. These recent developments indicate a favorable view of Boot Barn’s financial health and growth trajectory.
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