What Happened?
Shares of clothing and footwear retailer Boot Barn (NYSE: BOOT) fell 3.3% in the morning session after an analyst at Jefferies downgraded the stock, citing concerns over the company's valuation.
Jefferies analyst Corey Tarlowe lowered the rating on the western and workwear retailer to 'Hold' from a previous 'Buy' and also cut the price target to $175 from $187. The analyst noted that while the business continued to perform well, the stock's price had appreciated to levels that left little room for near-term upside. According to the firm, the risk-to-reward profile for the stock appeared more balanced at its current valuation, prompting the more cautious stance despite continued confidence in Boot Barn's fundamental business strength.
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What Is The Market Telling Us
Boot Barn’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 20.9% on the news that the company reported third-quarter earnings and provided EPS forecast for the next quarter, which missed Wall Street's estimates. The company also reported that CEO Jim Conroy had stepped down to become CEO of Ross Stores (NASDAQ: ROST). Chief Digital Officer John Hazen replaced him as Interim CEO. Overall, this was a softer quarter, and the management shake-up is spooking investors.
Boot Barn is up 13.3% since the beginning of the year, and at $172.94 per share, it is trading close to its 52-week high of $175.60 from July 2025. Investors who bought $1,000 worth of Boot Barn’s shares 5 years ago would now be looking at an investment worth $8,739.
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