TD Cowen downgrades Academy Sports on ‘challenged picture’

TD Cowen analyst John Kernan downgraded Academy Sports to Hold from Buy with a price target of $54, down from $58. The analyst has concerns regarding the company’s implied same-store-sales acceleration in the second half of 2024 and its gross margin rate durability in the event of a moderation in sales. Recent checks and inbound data point a “challenged picture” for Acadmey and the sporting goods category, the analyst tells investors in a research note. Cowen notes that Academy has lost market share in the U.S. retail sports good sales category in each of the past three years since its market share peaked at 6.7% in fiscal 2020.