Jefferies analyst Jonathan Matuszewski maintained a Buy rating on Academy Sports and Outdoors (ASO – Research Report) today and set a price target of $60.00.
Jonathan Matuszewski has given his Buy rating due to a combination of factors that suggest a promising outlook for Academy Sports and Outdoors. The company is expected to see over 25% upside in its shares, driven by strong comparable sales and margin improvement initiatives. Despite the stock remaining flat, the market seems to be undervaluing ASO’s potential, especially considering the launch of new brands and well-managed inventories compared to other retailers.
Moreover, the quality of the product assortment is set to reach new heights in 2025, with successful launches of brands like Converse and Osprey, and the introduction of the Jordan brand to numerous stores. The loyalty program, which has rapidly grown to over 11 million members, is anticipated to increase shopping frequency and wallet share. Additionally, the company is benefiting from trade-down tailwinds, with store traffic gains among higher-income households and a strong private label penetration. The valuation is attractive, as ASO trades at a discount compared to its historical averages, suggesting potential for multiple expansion as investor sentiment improves.
In another report released on March 18, Citi also maintained a Buy rating on the stock with a $60.00 price target.
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