UPDATE: Oppenheimer Upgrades Carter's (CRI) to Outperform

(Updated - January 4, 2016 8:51 AM EST)

Oppenheimer upgraded Carter's (NYSE: CRI) from to Outperform with a price target of $108.00 (from $90).

Analyst Anna Andreeva commented: "We are upgrading CRI to Outperform from Perform with $108 PT (from $90). While apparel remains challenging, strong everyday brands win in '16, in our view; CRI's dominant market share in niche baby category (30%) benefits as birth rates turn positive and frugal US consumer still spends on replenishment categories like kids' (see Opco '16 Outlook here). CRI has grown EPS by 15%+ since '12, and longer-term model calls for consistent double-digit earnings trajectory, driven by ecomm/international and sourcing/DC tailwinds. Near term, '16 guidance likely below consensus (tourism, promotions); we think company addresses 10% unit growth if negative store comps continue. With strong balance sheet ($5 cash/share) and moderate leverage (2.3x adjusted debt/EBITDA."

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 $89.03 yesterday.

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