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Investing.com - UBS raised its price target on Buckle, Inc. (NYSE:BKE) to $54.00 from $51.00 while maintaining a Neutral rating on the stock. The stock currently trades near its 52-week high of $57.53, with InvestingPro analysis suggesting slight overvaluation at current levels.
The investment firm cited Buckle’s "solid playbook to drive long-term sales growth, maintain high EBIT margins, and deliver consistent cash returns to shareholders" as key factors behind the decision. The company maintains impressive gross margins of 59% and offers a substantial 6.9% dividend yield to shareholders.
UBS noted that Buckle’s second-quarter report indicates the business maintains solid momentum and is effectively navigating tariff headwinds, though the firm expects limited earnings per share growth over the near term as margin trends decelerate in upcoming quarters.
Beyond fiscal year 2025, UBS forecasts a 5% five-year EPS compound annual growth rate, which combined with a high-single-digit percentage dividend yield justifies a price-to-earnings ratio of approximately 12x.
The firm maintained its Neutral stance on Buckle stock as it doesn’t anticipate any near-term catalysts to drive P/E expansion and sees "more compelling opportunities" elsewhere in its coverage universe.
In other recent news, Buckle Inc. reported robust financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.89, which was higher than the anticipated $0.80. Additionally, Buckle’s revenue reached $305.7 million, exceeding the forecasted $292.61 million. These results mark a positive development for the company, reflecting its strong performance in the recent quarter. While financial analysts had set specific projections, Buckle’s ability to exceed these estimates highlights its effective strategies and operations. The company’s financial health appears solid based on these recent earnings and revenue figures. Investors and market watchers may find these developments noteworthy as they assess the company’s current standing.
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