Carter's (NYSE:CRI) Upgraded at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded Carter’s to “strong buy.” Across analysts, the stock carries a “Moderate Buy” consensus rating with an average price target of $40.88.
• Carter’s shares opened at $30.19 after falling 5.9%, trading below their 50-day and 200-day moving averages and near the lower end of their 12-month range.
• The company exceeded quarterly expectations, reporting $0.26 EPS versus the $0.06 consensus and $615.49 million in revenue, up 5.2% year over year.

Carter's (NYSE:CRI - Get Free Report) was upgraded by BMO Capital Markets to a "strong-buy" rating in a report released on Tuesday, Zacks reports.

Several other research analysts have also recently weighed in on the stock. Wells Fargo & Company upgraded shares of Carter's from an "underweight" rating to an "equal weight" rating and boosted their price target for the stock from $30.00 to $42.00 in a report on Wednesday, June 17th. Weiss Ratings upgraded shares of Carter's from a "sell (d+)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Citigroup reissued a "buy" rating on shares of Carter's in a research report on Tuesday, July 21st. Wall Street Zen downgraded Carter's from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 29th. Finally, Capital One Financial set a $40.00 target price on Carter's in a report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $40.88.

Carter's Trading Down 5.9%

NYSE CRI opened at $30.19 on Tuesday. The firm has a market capitalization of $1.11 billion, a P/E ratio of 5.65, a PEG ratio of 3.61 and a beta of 0.84. The business has a fifty day simple moving average of $37.13 and a 200 day simple moving average of $37.32. Carter's has a 12 month low of $27.15 and a 12 month high of $44.44. The company has a current ratio of 2.47, a quick ratio of 1.50 and a debt-to-equity ratio of 0.55.

Carter's (NYSE:CRI - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The textile maker reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.06 by $0.20. Carter's had a net margin of 6.55% and a return on equity of 12.78%. The firm had revenue of $615.49 million for the quarter, compared to the consensus estimate of $605.68 million. During the same period in the previous year, the firm earned $0.17 EPS. The business's revenue for the quarter was up 5.2% compared to the same quarter last year. On average, analysts predict that Carter's will post 3.28 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. WINTON GROUP Ltd grew its position in shares of Carter's by 1.9% during the 2nd quarter. WINTON GROUP Ltd now owns 17,560 shares of the textile maker's stock valued at $723,000 after acquiring an additional 322 shares during the period. Engineers Gate Manager LP bought a new stake in shares of Carter's in the 2nd quarter worth approximately $2,260,000. Squarepoint Ops LLC raised its holdings in shares of Carter's by 114.7% in the 2nd quarter. Squarepoint Ops LLC now owns 97,709 shares of the textile maker's stock worth $4,022,000 after purchasing an additional 52,193 shares during the period. Nykredit A S purchased a new position in Carter's in the second quarter valued at approximately $72,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Carter's in the second quarter valued at approximately $399,000.

Carter's Company Profile

Carter's, Inc NYSE: CRI is a leading designer and marketer of infant and young children's apparel in North America. Headquartered in Atlanta, Georgia, the company's core business focuses on creating clothing and accessories for babies and children, including bodysuits, sleepwear, layette, outerwear and accessories that blend comfort, safety and style. Carter's flagship brand is complemented by its OshKosh B'gosh line, which offers heritage-inspired designs and durable fabrics for toddlers and young kids.

The company distributes its products through a diversified platform that includes wholesale partnerships with major department stores and mass merchandisers, direct‐to‐consumer e-commerce sites, and an extensive network of company-operated retail stores.

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