On Friday, TD Cowen demonstrated faith in Academy Sports & Outdoors Inc. (NASDAQ:ASO), elevating the stock’s price target from $67.00 to $86.00. The firm has maintained its Outperform rating on the shares. This modification indicates a positive view on the company’s performance, as the analyst observed enhancements in fourth-quarter trends based on examinations and data.
The assessment by TD Cowen proposes that Academy Sports & Outdoors has experienced favorable shifts in the market, which could impact the initial fiscal year 2024 guidance. The analyst’s choice to increase the price target is grounded in various factors, including customer preference for sporting goods, potential market share gains, and financial projections exceeding the consensus.
As indicated by the analyst, the updated price target of $86.00 is calculated on 11 times the anticipated earnings per share (EPS) for fiscal year 2025 and 7 times the enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA). These multiples still present a discount in comparison to Dick’s Sporting Goods (NYSE:) and other larger-cap retailers, suggesting potential for growth in Academy Sports & Outdoors’ stock valuation.
The analyst’s remarks underscore the significance of current market trends and the company’s position within the sporting goods sector. The analysis implies that despite uncertainties surrounding first-quarter performance, the longer-term prospects for Academy Sports & Outdoors remain strong.
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