Citi cuts Boot Barn price target to $137, keeps buy rating

Published 07/05/2025, 10:46
Citi cuts Boot Barn price target to $137, keeps buy rating

On Wednesday, Citi analysts adjusted their outlook on Boot Barn (NYSE:BOOT) Holdings Inc (NYSE: BOOT), reducing the price target to $137 from the previous $178, while maintaining a Buy rating on the company’s stock. Currently trading at $111.29, Boot Barn has seen its stock price decline significantly over the past three months, according to InvestingPro data. The revision comes ahead of Boot Barn’s fiscal fourth-quarter earnings report, scheduled for release after the market closes on May 14.

The focus for investors will likely be on the company’s commentary regarding tariffs, specifically mitigation efforts and pricing strategies to maintain its healthy 37.3% gross margin rate or absorb some of the costs. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 2.2, indicating solid ability to manage short-term obligations. Additionally, insights are anticipated on any strategic updates following the official appointment of CEO John Hazen, as announced on May 5.

Citi’s analysis suggests that Boot Barn’s fourth-quarter performance may align closely with the mid-point of its original guidance. This conclusion is based on a strong finish in March, according to high-frequency data trends, which may have compensated for a weaker February.

However, due to the ongoing uncertainty surrounding tariffs, Citi anticipates that Boot Barn will refrain from providing full-year fiscal 2026 guidance. Reflecting this uncertainty, Citi has revised its estimates, positioning them 14% below the consensus for fiscal year 2026 earnings per share (EPS). The new price target of $137 is derived from applying a 24x multiple to Citi’s reduced fiscal year 2026 EPS estimates.

In other recent news, Boot Barn has appointed John Hazen as its new Chief Executive Officer. Hazen, who previously served as the Interim CEO, was selected unanimously by the Board of Directors. With over 20 years of experience in the apparel and footwear industry, Hazen aims to focus on consistent growth and strategic initiatives. In related developments, Craig-Hallum analyst Jeremy Hamblin upgraded Boot Barn’s stock rating from Hold to Buy, setting a price target of $130. This upgrade reflects a positive outlook on the company’s growth potential despite potential tariff risks from imports. Hamblin believes Boot Barn’s scale will help it navigate these challenges and capture market share. The analyst also cites the company’s strong balance sheet as a mitigating factor against tariff-related shocks. Hamblin has revised Boot Barn’s fiscal year 2026 and 2027 estimates downwards to account for the potential impacts of tariffs.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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