Carter’s, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Paul Lejuez from Citi maintained a Hold rating on the stock and has a $28.00 price target.
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Paul Lejuez has given his Hold rating due to a combination of factors affecting Carter’s stock. Despite expecting a strong performance in the third quarter driven by robust direct-to-consumer sales in the U.S., there are concerns about the company’s strategy to reduce promotions and increase prices to counteract tariffs. This approach may not be sustainable without significant store closures, and it poses risks to margins in the second half of the year.
Looking ahead, Lejuez is cautious about Carter’s earnings potential in the fiscal year 2026 due to ongoing tariff challenges, pricing pressures, and increased marketing investments. The company’s management has suspended guidance for fiscal year 2025, adding to the uncertainty. While the third quarter is expected to show positive results, the outlook for the fourth quarter and beyond remains uncertain, leading to a Hold recommendation.
Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Dick’s Sporting Goods, Deckers Outdoor, and Kohl’s. According to TipRanks, Lejuez has an average return of 9.9% and a 57.41% success rate on recommended stocks.
In another report released on October 3, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $32.00 price target.