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On Monday, Williams Trading analyst Sam Poser revised the price target for Shoe Carnival (NASDAQ:SCVL) shares, reducing it from $48.00 to $35.00 while maintaining a Buy rating on the company. The stock, currently trading at $23.01, has experienced significant volatility, with a 42.65% decline over the past six months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment. Poser noted that the adjustment in estimates and price target reflects Shoe Carnival as the top contender among family footwear retailers, with expectations to meet or surpass its fiscal year 2024 guidance.
Shoe Carnival is set to report its fourth-quarter 2024 earnings before the market opens on March 20, 2025. Poser highlighted concerns for the fiscal year 2025 guidance, citing the Shoe Carnival brand’s dependence on Hispanic consumers, who may be facing challenges due to government policies and inflation. While the exact percentage of sales from this demographic is not specified, it is acknowledged as a significant portion.
Despite these concerns, there are positive developments for Shoe Carnival. The company is expanding its more upscale Shoe Station brand by constructing new stores and converting some existing Shoe Carnival locations. Poser anticipates an improvement in trends by the third quarter of 2025, driven by a better assortment of Nike (NYSE:NKE) products, for which Williams Trading maintains a Buy rating and a $93.00 price target.
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