Baird analyst Jonathan Komp selected Boot Barn ( NYSE: BOOT ) as a “fresh pick” after shares fell by double-digits after a disappointing earnings report .
Komp told clients that he was surprised by the steep drop for the stock given the understood issues of slowing demand and inventory issues. He added that the company’s conservative guidance is likely appropriate amid the uncertainty.
“While lack of catalysts and potentially more negative economic headlines are risks to our Fresh Pick trading call, we see a more compelling setup since current levels are pricing in an extreme fundamental downside case, in our view,” he wrote. “We think the stock can attract new investor interest and deliver healthy upside from current levels.”
Komp concluded that downside is extremely limited after the post-earnings plunge for the stock with upside to the extent that the stock “could roughly double” by 2024. For the next twelve months, he assigned a $90 price target to the stock alongside a Buy-equivalent rating.
Shares declined 1.74% shortly before Friday’s close, extending a 9.51% drop on Thursday.
Read the earnings call transcript .
For further details see:
Boot Barn offers compelling entry point amid post-earning plunge - Baird