Boot Barn’s Skyrocketing Stock Price May be Due for a Fall, According to Baird Analyst Jonathan Komp.
January 31, 2023
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Boot Barn ($NYSE:BOOT) is a leading specialty retailer of western and work-related footwear, apparel, and accessories. Boot Barn’s stock price has experienced an impressive rise in the past year, with shares increasing by over 40% since the start of 2023.
However, recently Baird analyst Jonathan Komp has downgraded his rating of Boot Barn’s stock to Neutral from Outperform. In his report, Komp praised the company’s management for their strong performance, but noted that the stock’s rapid growth has made it difficult to endorse at this point. His decision to downgrade the stock is based on macroeconomic concerns and the potential impact on consumer spending. Financial analysts have suggested that the recent rise in interest rates may put pressure on consumers and reduce their spending capacity, leading to a decrease in demand for Boot Barn’s products.
In addition, rising inflation could lead to higher prices for the company’s products, further reducing demand. Komp believes that these uncertain economic conditions could lead to a fall in Boot Barn’s stock price in the near future. Despite Komp’s downgrade of Boot Barn’s stock, other analysts remain optimistic about the company’s long-term prospects. They point to the company’s strong balance sheet and robust cash flows as indicators of its financial health. Moreover, management has implemented strategies to strengthen its competitive position in the marketplace, such as expanding its product offerings and increasing its online presence. It remains to be seen how Boot Barn will fare in the face of uncertain economic conditions, but investors should keep a close eye on the company’s performance over the coming months.
Share Price
On Monday, BOOT BARN stock opened at $83.6 and closed at $84.2, down by 2.3% from the prior closing price of 86.2. Komp warned investors against buying stock in the company due to its high share price and lack of concrete evidence to support continued growth. He believes that the company is overvalued and that its stock could drop significantly if the company fails to meet its growth targets. Furthermore, Komp believes that the company’s current valuation is unsustainable, given its current position in the market and lack of tangible competitive advantages.
Overall, the analyst’s warning should not be taken lightly, and investors should be aware that Boot Barn‘s stock could still be set for a fall. It is important to remember that the stock market is unpredictable and that any investment should be carefully evaluated before making a decision. In this case, investors may want to consider taking a more conservative approach and waiting until the company releases more information before investing. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Boot Barn. More…
| Total Revenues | Net Income | Net Margin |
| 1.62k | 168.86 | 10.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Boot Barn. More…
| Operations | Investing | Financing |
| -14.64 | -103.75 | 54.07 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Boot Barn. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.51k | 783.24 | 24.46 |
Key Ratios Snapshot
Some of the financial key ratios for Boot Barn are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.9% | 42.2% | 14.3% |
| FCF Margin | ROE | ROA |
| -7.3% | 20.6% | 9.6% |
VI Analysis
The VI App is an ideal tool for analyzing Boot Barn’s fundamentals, which provides a comprehensive assessment of the company’s long-term potential. The VI Risk Rating for Boot Barn is medium risk, which means that there are risks associated with the company’s financial and business aspects. VI App has detected three risk warnings, which are income sheet, balance sheet, and non-financial risks. The income sheet risk warning looks at the company’s revenue and expenses, and how well the company is managing its finances. The balance sheet risk warning takes a look at the company’s liquidity, solvency, and debt levels. The non-financial risks are those that are outside of the basic financial analysis, such as the company’s reputation, customer base, and other external factors. The VI App provides a comprehensive analysis of Boot Barn’s financial and operational performance and can help investors determine if the company is a good fit for their portfolios. By registering on vi.app, investors can easily access the warnings and understand what risks are associated with investing in Boot Barn. This will help them make more informed decisions when it comes to their investments. More…
VI Peers
The competition in the retail sector is fierce, with companies vying for market share in a number of ways. Boot Barn Holdings Inc is no exception, and competes against Christopher & Banks Corp, C’sMEN Co Ltd, and J.Jill Inc in a number of ways. While each company has its own strengths and weaknesses, the competition between them is intense, and the battle for market share is likely to continue.
– Christopher & Banks Corp ($OTCPK:CBKCQ)
Christopher & Banks Corporation is a Minnesota-based retailer of women’s apparel, accessories and footwear. The company operates under the Christopher & Banks, CJ Banks, and Missy & Plus names. It also offers merchandise through its e-commerce website and through a nationwide network of outlet stores. As of February 3, 2018, the company operated 942 stores in 44 states.
– C’sMEN Co Ltd ($TSE:3083)
MEN Co Ltd is a Japanese company that manufactures and sells electronic components. The company has a market cap of 1.52B as of 2022 and a Return on Equity of -12.39%. The company’s products include semiconductors, integrated circuits, and other electronic components.
– J.Jill Inc ($NYSE:JILL)
J.Jill Inc is a retailer of women’s apparel, accessories, and footwear. It operates through two segments, Retail and Direct. The company offers its products through retail stores, catalogs, and online. As of 2022, J.Jill Inc had a market cap of 186.02M and a Return on Equity of -233.39%. The company has been struggling in recent years, as evidenced by its negative ROE. J.Jill Inc is currently in the process of closing some of its stores in an effort to turn things around.
Summary
Investing in Boot Barn could present a high-risk, high-reward opportunity for investors. According to Baird analyst Jonathan Komp, the company’s stock has risen significantly in recent months and may be due for a fall. At the time of writing, media coverage of the company is mostly positive. Investors should be aware of the potential risks before committing their capital to Boot Barn, and should consult a financial adviser if they are unsure of how it could affect their portfolio.
