UBS raised the firm’s price target on Academy Sports to $74 from $65 and keeps a Buy rating on the shares. The Q2 performance was “better than feared” and “with each passing quarter that ASO shows it can deliver on what it says it’s going to do, it will put more upward pressure on its earnings multiple,” the analyst tells investors. While the sustainability of Academy’s margins “will remain a key debate for the stock,” the firm believes “there’s more likelihood than not that ASO maintains its recent profitability level as it continues to execute its strategy,” the analyst added.
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Read More on ASO:
- Academy Sports Stock (NASDAQ:ASO): A Diamond in the Retail Rough
- Academy Sports (NASDAQ:ASO) Soars on Q2 Earnings Beat
- Academy Sports jumps 12% to $55.92 after Q2 earnings beat, FY23 guidance raise
- Academy Sports raises 2023 adjusted EPS view $6.95-$7.65 from $6.80-$7.50
- Academy Sports expects to open six stores in Q3
