UBS sees a negative catalyst for Carter's (CRI)

UBS analyst Jay Sole reiterated a Neutral rating and $65.00 price target on Carter's (NYSE: CRI).

"We believe a tough macro environment plus unfavorable weather will cause CRI to deliver a small 1Q23 EPS miss, offer weak 2Q23 EPS guidance, and lower its FY23 outlook slightly. As a result, we think the Street revises down its FY23 EPS estimate slightly. We also think a weak report weighs on sentiment, causing CRI's 12x FY1 P/E to slide toward its ~10.5x past 1-year average. The options market is pricing in a +/- 7.3% jump over the event vs. 4.8% historical avg. move. We expect less volatility than 7.3% since sentiment already leans bearish. We think this limits downside over the event."

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 $70.51 yesterday.

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