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On Thursday, UBS analyst Jay Sole increased the price target for Boot Barn (NYSE:BOOT) Holdings Inc (NYSE: BOOT) to $210 from the previous target of $156, while reiterating a Buy rating on the stock. The retailer, currently valued at $4.77 billion, has shown impressive momentum with an 11.78% return over the past week. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with technical indicators suggesting overbought conditions. Sole’s valuation is based on the company’s strong position in the westernwear and workwear retail sectors, which are seen as niche and underserved markets.
Sole’s optimistic outlook for Boot Barn includes the potential addition of 330 stores within the next five years, which is projected to drive an approximate 13% compound annual growth rate (CAGR) in earnings per share (EPS) from fiscal year 2025 to fiscal year 2030. The company’s solid financial health, rated as GOOD by InvestingPro, supports this expansion strategy, with a healthy current ratio of 2.2 and moderate debt levels. The analyst also mentioned that Boot Barn is likely to handle tariffs more effectively than its smaller competitors, potentially accelerating its market share gains.
The endorsement of Boot Barn’s growth story is further supported by the company’s recent fourth-quarter 2025 earnings report, which reinforced Sole’s confidence in the retailer’s sales and EPS growth trajectory. According to Sole, the robust growth outlook for Boot Barn justifies a price-to-earnings (P/E) ratio of 27 times.
Boot Barn’s expansion strategy and resilience in the face of tariffs are key factors in UBS’s positive assessment, suggesting that the retailer is well-positioned to continue its growth in the coming years.
In other recent news, Boot Barn Holdings, Inc. announced its fiscal Q4 2025 earnings, reporting 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, missing the expected $458.91 million. Despite these shortfalls, Boot Barn achieved a record full-year revenue of $1.9 billion, marking a 17% increase year-over-year. The company plans to open 65-70 new stores in fiscal 2026, reflecting a strategic expansion effort. Analysts from firms like JPMorgan and Piper Sandler discussed potential impacts of tariffs on future earnings, with Boot Barn estimating an $8 million tariff impact in the latter half of fiscal 2026. The company has been proactive in mitigating tariff effects by diversifying its supply chain. Additionally, Boot Barn’s exclusive brand penetration increased to 38.6% in fiscal 2025, and the company aims to grow this further in the coming year.
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