Bullish: Analysts Just Made A Huge Upgrade To Their Boot Barn Holdings, Inc. (NYSE:BOOT) Forecasts
Celebrations may be in order for Boot Barn Holdings, Inc. (NYSE:BOOT) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the most recent consensus for Boot Barn Holdings from its ten analysts is for revenues of US$1.1b in 2022 which, if met, would be a substantial 38% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 119% to US$3.08. Before this latest update, the analysts had been forecasting revenues of US$984m and earnings per share (EPS) of US$2.26 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
Check out our latest analysis for Boot Barn Holdings
It will come as no surprise to learn that the analysts have increased their price target for Boot Barn Holdings 18% to US$74.40 on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Boot Barn Holdings analyst has a price target of US$86.00 per share, while the most pessimistic values it at US$54.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Boot Barn Holdings' growth to accelerate, with the forecast 38% annualised growth to the end of 2022 ranking favourably alongside historical growth of 8.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Boot Barn Holdings to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Boot Barn Holdings could be worth investigating further.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Boot Barn Holdings going out to 2024, and you can see them free on our platform here..
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
This article by Simply Wall St is general in nature. 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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