On Wednesday, Loop Capital analysts maintained their positive stance on Academy Sports & Outdoors Inc. (NASDAQ:ASO) by reiterating a Buy rating and a price target of $77.00.
The firm conducted a quarterly sporting goods pricing study and found that Academy Sports, referred to as "Academy," has widened its price competitiveness. The average price gap between Academy and its competitors increased by 100 basis points since October.
"We are encouraged by Academy’s continued price competitiveness, with the average price gap widening 100 bps from October," the analysts said.
They also anticipate that the company will experience a positive turn in comparable store sales growth in Fiscal Year 2025. The analysts expressed a belief that while investors may need to be patient, the potential for sales growth is present.
Academy Sports’ performance has led Loop Capital to label the company as their preferred small to mid-cap (SMID) value investment idea. It is also their top pick for the year 2025.
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