BKE - The Buckle started at Neutral as UBS sees macro headwinds balancing sales growth
2023-04-10 11:13:27 ET
The Buckle ( NYSE: BKE ) was initiated with a Neutral rating at UBS on Monday as a darkening macro backdrop is likely to dampen growth moving forward.
“We believe BKE can drive LT sales growth while preserving 20%+ EBIT margins. However, we think macro headwinds will cause BKE's growth to slow,” Equity analyst Mauricio Serna advised. “We see limited P/E expansion potential over the NTM and believe there are more compelling opportunities across our coverage universe. For these two reasons, we initiate at Neutral.”
He added that the company’s longer term growth potential remains intact, though outperformance in 2023 is unlikely in his view. Shares of the Nebraska-based retailer trended flat in the opening half of Monday’s trading day.
Dig into the company’s latest sales data .
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The Buckle started at Neutral as UBS sees macro headwinds balancing sales growth