Shares of under-the-radar foot and attire retailer Boot Barn can surge as shoppers purchase up western put on, Bank of America mentioned Friday. Analyst Jason Haas initiated protection of the corporate with a purchase ranking and $85 worth goal, saying that Boot Barn’s growth towards its 900 home retailer goal ought to assist it take share from a fragmented mother and pop market and win over rural shoppers. Haas’ worth goal implies upside of 35% from Thursday’s shut. “Boot Barn has a multi-year runway to grow its store count and take share in the fragmented western, work, and country lifestyle footwear and apparel market,” he wrote, calling Boot Barn a “best-in-class western footwear and apparel” retailer. “With larger scale comes better pricing, better selection, more exclusive brands, and better customer service.” Boot Barn is benefitting from a pandemic-induced migration to rural areas, and booming curiosity in cowboy boots and western attire, Haas mentioned. He does, nevertheless, count on this trend development to reasonable going ahead. “While still ‘in-style,’ we’re concerned that this trend has peaked and expect a decline in Boot Barn’s ladies’ fashion boots and apparel going forward,” he wrote. “But we estimate these categories account for just 14% of sales.” Despite their current earnings revision and 49% drop in 2022, shares are nonetheless buying and selling low cost, and properly under their historic 19 occasions ahead EPS estimates, Haas additionally famous. — CNBC’s Michael Bloom contributed reporting
This ‘best-in-class’ western retailer can rally more than 30% as consumers buy country fashion, Bank of America says