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Investing.com - DA Davidson maintained its Buy rating and $43.00 price target on Citi Trends (NASDAQ:CTRN) following the retailer’s impressive third-quarter performance. The stock currently trades at $44.87, slightly above the target, with InvestingPro data showing analyst high targets reaching $53.
The specialty retailer posted a 10.8% comparable sales increase in the third quarter, more than doubling the consensus estimate of 5.0% and showing acceleration on one-year, two-year, and three-year bases. This performance contributed to the company’s 5.77% revenue growth over the last twelve months.
DA Davidson noted this was the strongest comparable sales result they had observed this earnings season and represented Citi Trends ’ best performance since the stimulus-driven period during COVID.
The firm highlighted that fourth-quarter guidance exceeded consensus expectations as sales momentum continued into the current quarter.
According to DA Davidson, the comparable sales growth is primarily driven by a merchandise-led turnaround under new management, with increased store traffic identified as the main factor behind the improvements.
In other recent news, Citi Trends reported its third-quarter earnings for fiscal year 2026, showcasing a mixed financial performance. The company posted an earnings per share (EPS) of -$0.86, which did not meet the forecasted -$0.79, marking an 8.86% negative surprise. Nevertheless, Citi Trends achieved revenue of $197.1 million, exceeding the anticipated $187.33 million by 5.22%. This revenue growth reflects positively on the company’s strategic initiatives. Despite the EPS miss, these developments have sparked investor optimism. No recent analyst upgrades or downgrades have been reported for Citi Trends. These recent developments highlight the company’s ongoing efforts to enhance its financial standing.
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