Analyst Christopher Nardone of Bank of America Securities reiterated a Sell rating on Carter’s (CRI – Research Report), reducing the price target to $41.00.
Christopher Nardone has given his Sell rating due to a combination of factors impacting Carter’s stock. The company is facing significant challenges in the children’s apparel sector, with a particularly concerning outlook for margins in 2025. Carter’s has provided guidance for its 2025 earnings per share that falls below previous expectations, prompting a downward revision of future earnings estimates. This adjustment reflects a lower margin outlook, leading to a reduced price objective for the stock.
Moreover, Nardone expresses caution regarding Carter’s retail performance, as the company struggles with store traffic due to competition from its strong wholesale partnerships with major retailers like Target and Walmart. While there is potential for growth in Carter’s premium product lines, the competitive landscape remains a concern. Despite these challenges, the wholesale business remains a positive aspect, with strong partnerships and good visibility into future orders. However, potential pricing pressures in retail could affect wholesale performance in the future.
According to TipRanks, Nardone is a 4-star analyst with an average return of 14.4% and a 52.78% success rate. Nardone covers the Consumer Cyclical sector, focusing on stocks such as Boot Barn, Crocs, and American Eagle.