Academy Sports’ comps decline due to one-time headwinds, says Loop Capital

Loop Capital keeps a Buy rating and $77 price target on Academy Sports after its Q2 results. The comps decline was worse than expected, but this was primarily due to 300 bps of largely “one-time” headwinds, and the firm was “encouraged” by Academy Sports’ earnings as well as its August comp increase, the analyst tells investors in a research note. Academy is also trading at less than 8-times Loop’s revised expected forward earnings, making the stock “priced for imperfection”, the firm added.