Bank of America started off coverage on Boot Barn Holdings ( NYSE: BOOT ) with a Buy rating.
Analyst Jason Haas and team said they have a high degree of confidence in the company’s long-term store growth potential. Boot Barn ( BOOT ) is noted to be currently the industry leader in the western, work, and country lifestyle footwear and apparel market with over 300 stores across 38 states. The firm also sees Boot Barn's ( BOOT ) long-term domestic store target of 900 as achievable given the size of the U.S. rural population.
"And we see room for Boot Barn to continue to take share given the market is highly fragmented with over 1,000 mom & pop stores. With greater scale, Boot Barn is able to offer better pricing, better selection, more exclusive brands, and better customer service."
Also of note, unemployment in the industries Boot Barn ( BOOT ) customers typically work in remains low.
In terms of valuation, Boot Barn ( BOOT ) currently trades at 11X the FY24 consensus EPS estimate vs. the five-year historical average of 19X. BofA's price objective of $85 is based on 16X the firms' FY4 EPS estimate.
Shares of BOOT rose 0.83% premarket to $63.52 vs. the 52-week trading range of $50.20 to $126.60.
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Boot Barn gains after attracting buy rating from Bank of America