Academy Sports price target raised to $70 from $56 at Wells Fargo

Wells Fargo analyst Kate Fizsimons raised the firm’s price target on Academy Sports (ASO) to $70 from $56 and keeps an Overweight rating on the shares. Following Dick’s Sporting’s (DKS) impressive comp miss and bullish tone for next year, Academy Sports’ Q3 print was all in a mixed bag, the analyst says. Looking out, the company lowered its full year comp outlook to down 5%-6% and raised its annual EPS outlook to $7.50-$7.65 on better gross margins and a lower share count, implying a below Street Q4 revenue outlook, as the business expects a more normalized holiday TY. Net/net, despite macro headwinds and top-line puts and takes, the company’s operational improvements continue to cushion margins, and share repurchase activity continues to be a buffer to EPS, Fizsimons argues.