U.S.-Japan trade pact; Alphabet, Tesla to report - what’s moving markets
Investing.com - Loop Capital raised its price target on Academy Sports & Outdoors Inc. (NASDAQ:ASO) to $65.00 from $60.00 on Monday, while maintaining a Buy rating on the stock.
The research firm expects Academy’s comparable sales to turn positive sometime in fiscal year 2025, possibly in the current quarter, after a period of negative growth.
Loop Capital believes a positive sales inflection would lead to a significant revaluation of the stock, particularly given Academy’s potential for square footage expansion.
The firm used DICK’S Sporting Goods’ current valuation as a reference point for Academy’s potential valuation after a positive comparable sales inflection, while noting Academy would likely still trade at a discount to DICK’S.
Academy Sports & Outdoors remains Loop Capital’s favorite small and mid-cap value long idea in the retail sector.
In other recent news, Academy Sports & Outdoors Inc. reported its Q1 2025 earnings, revealing an adjusted EPS of $0.76, which fell short of the forecasted $0.8983. The company also reported revenue of $1.35 billion, slightly below the expected $1.37 billion, marking a 0.9% decrease year-over-year. Despite the earnings miss, Academy Sports saw a 10% increase in e-commerce sales and opened five new stores, expanding its footprint to 303 locations. Analysts from TD Cowen raised their price target for Academy Sports to $48, maintaining a Hold rating, while UBS kept a Neutral rating with the same price target, citing ongoing challenges and the need for a clear turnaround in performance. Truist Securities also raised its price target to $47, noting positive developments in product assortment but expressing caution about potential impacts from tariffs. The company continues to face challenges with comparable sales, which dropped by 3.7%, and overall store traffic, which declined by mid-single digits in the first quarter. Academy Sports remains focused on mitigating tariff impacts and maintaining its value proposition, with strategic initiatives in place to drive growth in e-commerce and new store openings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.