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Investing.com - Truist Securities raised its price target on Genesco (NYSE:GCO) to $31.00 from $25.00 on Friday, while maintaining a Hold rating on the stock. According to InvestingPro data, analyst targets for the stock range from $29 to $38, with the current price near Fair Value levels. The stock has shown strong momentum, gaining over 8% in the past week.
The firm cited solid momentum in Genesco’s Journeys business, which is experiencing a strong start to the third quarter with double-digit comparable sales growth. This performance builds on double-digit gains from the same period last year, driven by strong back-to-school trends. The company maintains a current ratio of 1.56, indicating sufficient liquidity to meet short-term obligations.
The retailer has raised its full-year revenue guidance based on these positive trends. However, Genesco maintained its previous earnings per share expectations due to gross margin pressures from tariffs and promotional headwinds affecting its Schuh business in the UK.
Truist Securities increased its earnings per share estimates for fiscal years 2026 and 2027 to $1.60 and $2.25, respectively, up from previous estimates of $1.55 and $2.10.
The new price target represents a multiple of 16 times forward twelve-month earnings estimates, up from the previous 15 times multiple, reflecting stronger momentum at Journeys and accounting for a higher market multiple while still maintaining a discount of approximately 30%.
In other recent news, Genesco Inc . reported its second-quarter earnings for 2025, showing a better-than-expected performance despite posting a loss. The company’s adjusted diluted loss per share was $1.14, surpassing analyst expectations of a $1.25 loss. Revenue came in at $546 million, exceeding the forecasted $532.4 million. Jefferies responded to this performance by raising its price target for Genesco to $29 from $24, while maintaining a Hold rating on the stock. The firm noted that Genesco had delivered "another solid quarter" with its fourth consecutive period of positive comparable sales. These developments come amid broader challenges and concerns about the future outlook. Investors remain attentive to how the company navigates these challenges moving forward.
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