Gold prices hovers near all-time high amid global political uncertainty
Investing.com - DA Davidson raised its price target on Citi Trends (NASDAQ:CTRN) to $43.00 from $40.00 on Tuesday, while maintaining a Buy rating on the stock. The retailer, currently trading at $33.95 with a market cap of $269 million, has shown remarkable momentum with a 106.72% return over the past year. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The firm cited Citi Trends’ second-quarter 2025 results, which showed broad-based strength across regions and categories, as evidence that the company’s renewed focus on trendy products and three-tiered assortment strategy is resonating with customers.
DA Davidson believes the key to potential upside for Citi Trends is the comparable sales impact of adding trendy, extreme value closeout products and the associated flow-through on those higher margin sales against a stable cost base.
The investment firm expects continued execution on these strategies, along with further supply chain efficiencies and buying improvements, to drive better EBITDA margins over time.
The new price target is based on 7.0x DA Davidson’s 2027 EBITDA estimate and 11.5x its 2026 forecast, with the firm noting its bull case suggests nearly 80% upside potential from current levels.
In other recent news, Citi Trends Inc reported its second-quarter 2025 earnings, showcasing a strong financial performance. The company achieved an earnings per share (EPS) of $0.46, which was a notable improvement compared to the forecasted loss of $0.92. This resulted in a significant 150% earnings surprise. Additionally, Citi Trends reported revenue of $190.8 million, exceeding the projected $183.64 million. These results highlight the company’s ability to outperform financial expectations, marking a positive development for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.