Jefferies lowers Boot Barn stock price target on sales outlook

Jefferies has reduced its price target on Boot Barn Holdings Inc. (NYSE:BOOT) from $195 to $175, while keeping a Buy rating. The move comes after the retailer issued a more subdued sales outlook and reported weaker traffic trends, which limit near-term visibility. This cautious outlook mirrors the cautious stance taken by 7 other analysts who have lowered their earnings estimates for the upcoming period.

Nonetheless, Boot Barn has demonstrated strength in new stores, with average unit retail and units per transaction both positive. The stock is currently trading at a lower P/E ratio of 15.8, compared to a five-year average of 17 times, suggesting it is trading at a bargain relative to near-term earnings growth. Boot Barn's price-to-earnings (PEG) ratio of 0.72 further supports this assessment, indicating potential upside as earnings are expected to grow.

Despite these positive indicators, the reduced price target stems from near-term uncertainties. Boot Barn's fiscal second-quarter earnings for 2027 surpassed expectations, with earnings per share of $1.73 compared to the forecasted $1.64, while revenue aligned with expectations at $581.8 million. However, the company issued cautious guidance for the upcoming quarters, a factor that has raised concerns among investors.

Other financial institutions, including UBS, Piper Sandler, BTIG, and TD Cowen, have also lowered their price targets for Boot Barn, primarily due to a slowdown in sales and a less optimistic sales outlook.