Wedbush downgrades Carter’s to Neutral as post-COVID ‘baby boom” fizzles out

As previously reported, Wedbush analyst Tom Nikic downgraded Carter’s to Neutral from Outperform with a $78 price target. The firm notes the stock has rallied past its price target and sees near-term risks to fundamentals. The U.S. birth rate has inflected negatively and wholesale partners are planning inventories very cautiously. Plus, with the stock’s rally over the past 2-3 months, valuation metrics have re-rated meaningfully higher, putting the stock in "no man’s land": not cheap enough to be considered a value stock, and it doesn’t fit the bill for growth investors either, the firm argues.