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Investing.com - Truist Securities has raised its price target on Academy Sports & Outdoors Inc. (NASDAQ:ASO) to $50.00 from $47.00 while maintaining a Hold rating on the stock.
The price target adjustment follows Academy Sports’ first positive comparable sales since 2021, with second-quarter comps increasing 0.2%, beating Street estimates of -0.8%.
Academy Sports also modestly raised its full-year guidance, despite which its shares fell by high single digits compared to the S&P’s approximately 1% decline.
Truist Securities noted that Academy Sports has executed well in expanding and elevating its merchandise assortment, particularly gaining better access to higher-end Nike (NYSE:NKE) and Jordan products, and has positioned itself to mitigate tariff headwinds this year.
The firm remains cautious on the second-half outlook, which assumes profitability will meaningfully improve, as tariff pressures likely become more impactful to Academy Sports’ core middle-income consumers.
In other recent news, Academy Sports and Outdoors released its financial results for the second quarter of 2025, showing mixed outcomes. The company reported net sales of $1.6 billion, marking a 3.3% increase compared to the same period last year. However, its earnings per share (EPS) came in at $1.94, falling short of the anticipated $2.16, resulting in a 10.19% negative surprise. This earnings miss occurred despite the company achieving a year-over-year increase in revenue. These developments are crucial for investors to consider when evaluating the company’s financial health.
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