Boot Barn (BOOT) Valuation Check After Goldman Sachs Buy Rating and Store Expansion Growth Story
Boot Barn Holdings, Inc. saw its shares climb about 4% after Goldman Sachs kicked off coverage with a positive view, spotlighting the retailer’s expanded store opening plans as a key engine for future sales growth.
See our latest analysis for Boot Barn Holdings.
The upbeat reaction to Goldman’s coverage comes on top of a strong run, with Boot Barn’s 30 day share price return of 18.24% and five year total shareholder return of 396.87% suggesting momentum is still building rather than fading.
If this kind of growth story has your attention, it is also worth exploring fast growing stocks with high insider ownership for more companies where insiders are backing the upside.
With shares already up strongly this year and the stock now trading just below Wall Street’s targets, the key question is whether Boot Barn is still mispriced or if the market is already baking in its next leg of growth.
Most Popular Narrative Narrative: 9.9% Undervalued
With Boot Barn last closing at $204.71 against a narrative fair value near $227, the story frames today’s price as leaving upside still on the table.
Increasing penetration of higher margin exclusive brands (now exceeding 40% of sales, with a target of 50% in coming years) is supporting merchandise margin expansion. This transition to exclusive brands supported by targeted marketing initiatives and new sourcing strategies positions the company for improved net margins and long term profitability.
Want to see how this margin play justifies a premium earnings multiple? The narrative leans on brisk top line growth and surprisingly resilient profitability. Curious which future mix and expansion assumptions are doing the heavy lifting in that fair value math? Read on to unpack the full blueprint behind this price target.
Result: Fair Value of $227.14 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sustained double digit comps and margin expansion are not guaranteed, as both overexpansion and shifting fashion trends are capable of quickly challenging this upbeat scenario.
Find out about the key risks to this Boot Barn Holdings narrative.
Another Lens on Valuation
While the narrative fair value suggests Boot Barn is about 10% undervalued, our earnings based yardstick tells a different story. At roughly 30 times earnings, the shares trade far richer than both the US specialty retail average of 20.2 times and peers at 17.8 times, and well above a fair ratio of 18.5 times, which hints at real de rating risk if growth cools.
See what the numbers say about this price — find out in our valuation breakdown.
Build Your Own Boot Barn Holdings Narrative
If you see the numbers differently or want to stress test your own assumptions, you can create a personalized Boot Barn view in just minutes: Do it your way.
A great starting point for your Boot Barn Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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