On Tuesday, Boot Barn (NYSE:BOOT) Holdings Inc (NYSE: BOOT) saw its price target increased to $150.00 from the previous $125.00 by BTIG, while the firm maintained a Buy rating on the stock. The adjustment follows BTIG's revision of Boot Barn's first fiscal quarter earnings per share (EPS) estimate, raising it to $1.15 from $0.99, which is in line with consensus estimates.
The analyst at BTIG anticipates a slight slowdown in comparable store sales, projecting a year-over-year increase of 1% for the quarter, a modest decline from the current quarter-to-date trend of 1.4%. The raised margin assumptions are based on an improved top-line and well-managed promotions, as noted by the management.
Further, BTIG has adjusted its revenue and margin expectations for the remainder of the year, predicting modestly positive comparable sales from the second to the fourth fiscal quarter. These updates, coupled with better margin assumptions due to fixed cost leverage, have led to an increase in the fiscal year 2025 EPS estimate to $5.13, which is above the consensus of $4.77 and the company's guidance range of $4.55 to $4.85.
The new stock price target of $150 reflects BTIG's revised estimates, along with a slight increase in their multiple assumptions. The firm believes that sustained positive comparable sales could allow Boot Barn to align more closely with its growth peers and receive greater recognition for its potential unit growth.
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