Carter's (CRI) PT Lifted to $105 at Sterne Agee CRT; Strong Beat and Conservative Outlook

Sterne Agee CRT analyst Tom Nikic reiterated a Buy rating, raised estimates and boosted his price target on Carter's (NYSE: CRI) to $105.00 (from $94.00) following strong Q1 results drivey by sales and margins. The analyst also said the outlook looks conservative.

Nikic commented, "CRI started the year on a high note (33% EPS growth vs. guidance for flat growth), with meaningful upside to expectations for both sales and margins. Despite the Q1 beat, strong demand trends and multiple tailwinds to margins (cotton costs, OshKosh improvement, lean inventories), management did not raise guidance for the year, presenting a favorable beat-and-raise set-up for the remainder of the year. As a result, we would remain buyers of these high-quality shares."

The firm raised FY15/FY16 EPS of $4.62/$5.48 (from $4.45/$5.22).

For an analyst ratings summary and ratings history on Carter's click here. For more ratings news on Carter's click here.

Shares of Carter's closed at $92.97 yesterday.

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