Bank of America Securities analyst Christopher Nardone has reiterated their bearish stance on CRI stock, giving a Sell rating on October 14.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Christopher Nardone has given his Sell rating due to a combination of factors impacting Carter’s financial outlook. One of the primary concerns is the incremental tariff headwinds that are expected to affect the company’s earnings. The uncertainty surrounding how the children’s apparel market will react to price increases adds to the cautious stance. Additionally, the projected earnings per share for fiscal 2026 have been lowered by 16% to $1.80, reflecting the anticipated impact of higher tariff rates.
Furthermore, Carter’s strategic initiatives, such as shifting to higher price point products and closing less productive stores, are expected to take time to materialize. In the short term, the company faces margin pressures from tariffs, labor costs, freight, and marketing investments. There is also uncertainty about whether price increases will lead to a decrease in demand. These factors contribute to the challenging fundamental backdrop for Carter’s, reinforcing the Sell rating with a price objective of $25.00.
According to TipRanks, Nardone is a 4-star analyst with an average return of 15.7% and a 60.87% success rate. Nardone covers the Consumer Cyclical sector, focusing on stocks such as Deckers Outdoor, Ralph Lauren, and Levi Strauss & Co.
In another report released on October 14, Barclays also maintained a Sell rating on the stock with a $23.00 price target.