Eos Energy stock falls after Fuzzy Panda issues short report
Investing.com - UBS raised its price target on Carter’s (NYSE:CRI) to $33.00 from $26.00 on Tuesday, while maintaining a Neutral rating on the children’s clothing retailer. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics, with the company maintaining a healthy dividend track record of 13 consecutive years.
The price target increase follows Carter’s third-quarter earnings report, which UBS noted exceeded their forecasts. The company delivered better-than-expected gross margin protection during the quarter, maintaining a robust gross profit margin of 47.29% and a strong current ratio of 2.2, indicating solid liquidity.
UBS has increased its earnings per share estimates for Carter’s, which directly contributed to the higher price target. Despite the improved outlook, the firm continues to see a "balanced upside/downside skew" for the stock.
The analyst firm highlighted "big two-way risk" to fiscal year 2026 consensus EPS estimates and does not anticipate significant changes to Carter’s price-to-earnings ratio in the near term.
UBS observed that even if Carter’s grows earnings per share in fiscal year 2026 as its guidance suggests, the market appears to be pricing in just 3-4% annual EPS growth over the long term, which supports the stock’s P/E ratio remaining within its current range.
In other recent news, Carter’s Inc. reported mixed financial results for the third quarter of 2025. The company achieved an adjusted earnings per share (EPS) of $0.74, surpassing the forecasted $0.72. However, revenue fell short of expectations, reaching $758 million compared to the anticipated $771.17 million. Additionally, Carter’s announced plans to offer $500 million in senior notes due 2031 through its subsidiary, The William Carter Company. The proceeds, along with cash on hand, are intended to redeem existing senior notes due in 2027 and cover related expenses. Moody’s Ratings recently changed Carter’s outlook to negative from stable, while affirming its Ba2 corporate family rating. This outlook change is attributed to ongoing pressure on Carter’s operating income and free cash flow amid a challenging consumer environment. These developments highlight the company’s current financial and strategic efforts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.