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On Tuesday, UBS analyst Jay Sole reaffirmed a positive stance on Boot Barn (NYSE:BOOT) Holdings Inc (NYSE: BOOT), maintaining a Buy rating and a $210.00 price target on the company’s shares. This aligns with the broader analyst consensus, as InvestingPro data shows seven analysts have recently revised their earnings expectations upward. Sole’s assessment follows a series of meetings with Boot Barn’s management on May 19th, which bolstered the firm’s confidence in the retailer’s growth prospects.
Boot Barn, a leading retailer in the specialized segments of westernwear and workwear with a market capitalization of $4.92 billion, is recognized by UBS as an undervalued growth narrative. The company has demonstrated strong momentum, with revenue growing at 14.64% and its stock delivering a 39.96% return over the past year. The analyst predicts that Boot Barn could open an additional 330 stores within the next five years, potentially leading to an approximate 13% compound annual growth rate (CAGR) in earnings per share (EPS) from fiscal year 2025 to 2030.
The UBS analyst also suggests that Boot Barn is well-positioned to handle tariffs more effectively than smaller competitors. This advantage could expedite market share gains for the company, as per the firm’s analysis. The anticipated robust sales and EPS growth are considered by UBS to warrant a price-to-earnings (P/E) ratio of 27 times.
The meetings with Boot Barn’s management have reinforced UBS’s view, providing insights that align with the firm’s expectations for the retailer’s continued success and expansion. The analyst’s commentary underscores Boot Barn’s dominance in its market sectors and its potential for significant growth in the near future.
In other recent news, Boot Barn Holdings Inc. reported its fiscal Q4 2025 earnings, showing an earnings per share (EPS) of $1.22, which fell short of the forecasted $1.25. The company’s revenue for the quarter was $453.7 million, also missing the expected $458.91 million. Despite these misses, Boot Barn achieved a 17% increase in total revenue year-over-year, reaching a record $1.9 billion for fiscal 2025. Analysts have responded positively, with UBS raising its price target to $210, Williams Trading to $190, and Citi to $180, all maintaining a Buy rating on Boot Barn’s stock. UBS highlighted Boot Barn’s potential for a 13% compound annual growth rate in earnings per share from fiscal 2025 to 2030. The company’s expansion strategy includes opening 65-70 new stores in fiscal 2026, aiming for a 15% annual growth rate. The introduction of traffic counters and focused merchandise planning by the new CEO, John Hazen, are expected to drive further growth. Additionally, Boot Barn’s exclusive brand penetration increased to 38.6% in fiscal 2025, contributing significantly to its robust financial performance.
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