Home Stock Is it too late to buy Boot Barn stock after receiving a buy rating from Jefferies?

Is it too late to buy Boot Barn stock after receiving a buy rating from Jefferies?

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On Tuesday, Boot Barn Holdings Inc. (NYSE:BOOT) shares fell by more than 3% despite receiving an upbeat analyst report from Jefferies. The firm resumed coverage of the stock with a buy rating and price target of $150 per share.

Analyst Corey Tarlowe said the company’s current valuation multiples look attractive compared to historical levels.

In an industry research note to investors, the analyst wrote:

Valuation in speciality apparel is noted to now be 11X on average vs. the 3-year historical average of ~13X.

Although Boot Barn shares have pulled back more than 7% since the 18th of November, the stock is still up more than 190% this year.

Is there time left to buy?

From an investment perspective, Boot Barn shares trade at reasonable trailing 12-month and forward P/E ratios of 28.57 and 26.61, respectively. Therefore, the stock could be a compelling option for value investors.

In addition, analysts forecast its earnings per share to rise by 22.80% this year, before growing at an average annual rate of about 17.60% over the next five years. 

As a result, the stock could also gain the attention of long-term growth investors.

Source – TradingView

Technically, Boot Barn shares seem to be trading within a descending channel formation in the intraday chart. As a result, the stock has recovered from overbought conditions, opening another entry opportunity for buyers.

Therefore, investors could target potential rebound profits at about $126.23, or higher at $130.72, while $117.40 and $113.38 are crucial support levels.

The post Is it too late to buy Boot Barn stock after receiving a buy rating from Jefferies? appeared first on Invezz.

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