UBS raises Buckle stock price target to $51 on sales growth acceleration

Published 13/08/2025, 15:28
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com - UBS raised its price target on Buckle, Inc. (NYSE:BKE) to $51.00 from $40.00 on Wednesday, while maintaining a Neutral rating on the stock. According to InvestingPro data, the company currently trades at a P/E ratio of 14.5x and maintains impressive gross profit margins of 59%.

The price target increase comes as UBS expects Buckle’s second-quarter 2025 quarter-over-quarter sales growth acceleration to drive stronger gross margin percentage year-over-year change and earnings per share growth.

UBS believes a solid second-quarter report is mostly priced into the stock already, noting that Buckle shares have jumped 17.4% over the last month compared to the S&P 500’s 3.2% move during the same period.

The firm does not anticipate third-quarter-to-date commentary or fiscal year 2025 guidance from the company, which contributes to its view of limited upside potential for the stock.

The options market is pricing in a plus or minus 1.7% move for Buckle shares around the earnings event, compared to a historical average move of plus or minus 4.0%, with UBS expecting below-average volatility.

In other recent news, The Buckle, Inc. reported significant financial results, with a notable 11% increase in comparable store net sales for July, reaching $110.8 million, which marks a 12.3% rise from the previous year. The company also disclosed its second-quarter performance, showing a 7.3% increase in comparable store sales and an 8.3% rise in net sales, totaling $305.7 million. In June, Buckle recorded a 3.8% increase in comparable store sales, with total net sales rising 4.7% to $106.5 million. May figures also reflected a positive trend, with a 7.2% rise in comparable store sales and net sales reaching $88.4 million, a 7.8% increase from the previous year.

Additionally, UBS maintained its Neutral rating on Buckle’s stock, citing limited earnings growth potential despite the company’s solid business fundamentals. The investment firm highlighted Buckle’s strategies for long-term sales growth and high EBIT margins. In terms of shareholder returns, Buckle announced a quarterly dividend of $0.35 per share, payable to shareholders on record by July 15, 2025. Despite closing one store in fiscal May, Buckle continues to operate 438 retail stores across 42 states, maintaining its focus on offering a unique shopping experience.

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