Citi analyst Paul Lejuez maintained a Buy rating on Academy Sports and Outdoors (ASO – Research Report) today and set a price target of $60.00.
Paul Lejuez has given his Buy rating due to a combination of factors influencing Academy Sports and Outdoors. The company is expected to slightly exceed fourth-quarter earnings per share expectations, driven by stronger comparable sales, although this is somewhat offset by weaker gross margins. Management is anticipated to provide guidance for fiscal year 2025 adjusted EPS that is below consensus, yet the current trading price reflects a significant amount of pessimism, suggesting potential upside if comparable sales improve.
Despite some near-term challenges, such as macroeconomic uncertainties and tariff concerns, the stock is trading at a low forward price-to-earnings multiple, indicating that negative expectations are already factored in. Additionally, the introduction of new Nike products is expected to positively impact sales. While the risk/reward balance into the fourth-quarter earnings is considered even, any signs of improvement in sales trends could be viewed favorably by investors.
Questions or Comments about the article? Write to editor@tipranks.com