BOOT - Baird expects Boot Barn's red-hot run to cool into 2023
Boot Barn’s ( NYSE: BOOT ) nearly 40% gain to start 2023 has set it up to fall back to earth, according to Baird analyst Jonathan Komp.
Komp cut his rating on the stock to Neutral from Outperform given macro concerns hitting consumers. While management’s execution is laudable, Komp told clients that the stock’s recent surge has made it hard to recommend at present.
“We are tempering our bullish view of BOOT's long-term potential given our more cautious sector-wide outlook,” he explained. “Importantly, with higher valuation levels justified over time, BOOT would be among the first stocks we could consider upgrading if we gain confidence in the macro/earnings backdrop.”
Komp maintained an $86 price target on the stock. Shares of the California-based apparel retailer fell fractionally on Monday.
Read more on the company’s latest earnings result .
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Baird expects Boot Barn’s red-hot run to cool into 2023