ASO - Academy Sports and Outdoor is called out by BofA for having 45% upside potential

Bank of America is constructive on Academy Sports and Outdoors (NASDAQ:ASO) after taking in last week's earnings report. The firm lifts its EPS forecast for next year to $6.00 from $5.10 on it view that better in-stock positions in key hard lines categories such as home fitness, bikes, and camping/fishing equipment will offset some of the expected margin headwinds. Another positive factor seen for ASO is the stickiness being seen in solitary leisure categories such as outdoor cooking and entertainment amid an expanded assortment of consumables offerings. "We also see potential for accelerated store growth (beyond LT guidance of 8- 10 new stores / year) beginning in 2023," updates the analyst team. BofA reiterates a Buy rating on ASO and hikes its price objective to $68 to rep 45% upside potential. ASO still trades well above its 100-day and 200-day moving averages.

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Academy Sports and Outdoor is called out by BofA for having 45% upside potential