ASO - Academy Sports and Outdoors could ramp up store expansion - Oppenheimer

Oppenheimer stays bullish on Academy Sports and Outdoors (NASDAQ:ASO) after the retailer displayed strong underlying trends in Q1. Analyst Brian Nagel and team take the view that behind the noise of a fluid and uncertain macro backdrop, a much improved ASO business model continues to take shape. Strengthening sales volumes is noted to be leveraging well against a leaner cost infrastructure. Notably, ASO opened its first new store since 2019. Management indicated that the Atlanta location has thus far performed consistently with expectations. The company is said to look for ROIC of at least 20% and positive EBITDA after the first year. Oppenheimer thinks the recent success affords ASO management increased confidence to accelerate new store expansion. Oppenheimer has an Outperform rating on ASO and 12-month to 18-month price target of $50. Shares of ASO fell 0.16% premarket to $38.64. The Seeking Alpha Quant Rating on Academy Sports and Outdoors

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Academy Sports and Outdoors could ramp up store expansion - Oppenheimer