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Highlights

  • Jefferies cuts Boot Barn rating to Hold, lowers target price to USD175 from USD187.
  • Valuation flagged as stretched with shares trading above +1 standard deviation level.
  • Firm sees limited near-term upside despite solid operating trends and sales growth.

Jefferies downgraded Boot Barn Holdings Inc. (NYSE: BOOT) from Buy to Hold on Wednesday, citing concerns over elevated valuation levels as the stock nears its 52-week high. The firm also trimmed its price target to USD175.00 from USD187.00, noting that the risk/reward profile has become more balanced.

According to Jefferies analyst Corey Tarlowe, the downgrade does not reflect a change in the company’s operational outlook but rather its current trading position. “The stock has appreciated to levels that leave little room for near-term upside, even though the business continues to perform well,” Tarlowe stated.

While Jefferies acknowledged ongoing demand for Boot Barn’s products and cited continued unit growth as a supportive trend, the downgrade is grounded in valuation metrics rather than operational performance. The firm emphasized that from a current pricing standpoint, the risk/reward balance appears less favorable than before.

This downgrade contrasts with several other recent analyst views. KeyBanc Capital Markets maintained an Overweight rating and raised its target to USD195, pointing to better visibility on same-store sales trends. Similarly, Citi reiterated its Buy rating and USD180 target, while Piper Sandler and BTIG also expressed optimism with targets of USD184 and USD200 respectively, citing recent sales acceleration and improved execution.

Boot Barn’s recent 8-K filing showed a 10.1% increase in same-store sales for the first nine weeks of the fiscal quarter, which has drawn positive attention across the analyst community. However, Jefferies’ move signals that valuation may now be a limiting factor in the short term, even amid ongoing top-line growth.

Overall, the downgrade reflects a valuation-driven reassessment rather than a fundamental shift in the company’s performance trajectory. Jefferies continues to recognize the underlying demand trends but has opted for a more neutral stance given the stock’s recent appreciation and stretched multiples.