UPDATE: Craig-Hallum Downgrades Citi Trends (CTRN) to Hold

May 20, 2022 7:20 AM EDT
Get Alerts CTRN Hot Sheet
Price: $25.12 +4.58%

Rating Summary:
    6 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 20
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(Updated - May 20, 2022 9:23 AM EDT)

Craig-Hallum analyst Jeremy Hamblin downgraded Citi Trends (NASDAQ: CTRN) from Buy to Hold with a $34 price target (down from $80) as inflationary pressures mount on the core customers.

The analyst commented, "We expect Citi Trends to deliver a solid Q1 print on Tuesday, May 24. While we continue to believe in the CTRN story long-term, we have been very wrong on the stock and feel compelled to move to the sidelines. Our concern is that inflationary pressures are hurting the core CTRN customer in an outsized manner and are unlikely to abate for the remainder of 2022 with guidance likely to fall during the year. Given the inflationary backdrop, we believe investors will remain skeptical of the story until inflation headwinds subside. We continue to believe in the positive changes David Makuen and the management team have made the past couple of years and recognize the stock is only 30% above the level it closed at the end of 2019, but the narrative on the stock is likely to dominate performance as much as fundamentals. Checks suggest sales trends remain sluggish as a higher portion of the CTRN disposable income is allocated to food and energy. We downgrade to Hold and reduce our Price Target to $34"

For an analyst ratings summary and ratings history on Citi Trends click here. For more ratings news on Citi Trends click here.

Shares of Citi Trends closed at $29.30 yesterday.


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