UBS checks suggest Carter’s will lower FY23 EPS guidance 2%-3%

UBS analyst Jay Sole maintained a Neutral rating and $70 price target on Carter’s, telling investors in a research note that the firm’s checks suggest a weakening consumer spending environment, warm weather, and a negative impact from student loan repayments resuming will cause Carter’s to lower its FY23 EPS guidance by 2%-3%. The firm thinks a guidance revision downward will surprise the market negatively, putting pressure on Carter’s 11x P/E.