Academy Sports & Outdoors Inc. (ASO) PT Lowered to $55 at Citi

Citi analyst Paul Lejuez lowered the price target on Academy Sports & Outdoors Inc. (NASDAQ: ASO) to $55.00 (from $60.00) while maintaining a Buy rating.

The analyst comments "While we expect an in-line w/cons 1Q25 comp of -3% (BMO 6/10), we expect below cons EPS of $0.87 (cons $0.92) driven by higher SG&A. We expect mgmt to reiterate F25 EPS guidance of $5.75-6.20, but they may point to the low-end of the range driven by higher tariffs (China 30% vs 20% in prior guidance). ASO has several initiatives to drive improving comps in F25 (new Jordan/NKE product, RFID/tech rollouts, new stores entering comp base), however the timing of a comp inflection remains uncertain and may not materialize in 2Q (as mgmt previously expected). However, shares trade at an F25E P/E multiple of just 7.0x, suggesting a lot of pessimism is already priced-in. Any signs of comps improving vs the 1Q mkt expectation of a -3% comp will be viewed positively."

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