Sportsman’s Warehouse downgraded on coverage transfer at B. Riley

B. Riley downgraded Sportsman’s Warehouse to Neutral from Buy with a price target of $4.50, down from $6.50, following a transfer of analyst coverage. The analyst says the company’s elevated merchandising strategy and inventory realignment should result in a better customer experience ahead. However, such initiatives will likely take time to result in meaningful comp sales improvement, the analyst tells investors in a research note. The firm expects underlying demand in Sportsman’s core outdoor product categories to remain subdued in 2024, stemming from a still-pressured consumer and the lingering impact of the COVID unwind.