Academy Sports Feels The Squeeze: Analyst Highlights Post-Holiday Slump And Conservative Outlook Under New Leadership
Portfolio Pulse from Shivani Kumaresan
Truist Securities analyst Joseph Civello reiterated a Buy rating on Academy Sports and Outdoors Inc (NASDAQ:ASO) but lowered the price target from $77 to $75, citing a post-holiday slump and a conservative outlook under new leadership. The company's Q4 FY23 sales and adjusted EPS missed analyst estimates, with sales growing 2.8% year-on-year to $1.794 billion and adjusted EPS at $2.21. The FY comp guidance of down (4%) to +1% reflects the new CEO/CFO's conservative outlook, despite positive signs in the Outdoor category and potential for gross margin improvement.
March 22, 2024 | 5:41 pm
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NEGATIVE IMPACT
Academy Sports and Outdoors Inc's Q4 FY23 sales and EPS missed estimates, with a conservative FY comp guidance under new leadership. Truist Securities lowered the price target from $77 to $75 but maintained a Buy rating.
The reduction in the price target by Truist Securities, combined with the missed Q4 sales and EPS estimates, and the conservative outlook provided by the new leadership, are likely to negatively impact investor sentiment towards ASO in the short term. The analyst's continued support with a Buy rating might mitigate some negative impact, but the overall tone suggests a cautious approach to ASO's near-term prospects.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100