Boot Barn (BOOT) is an underappreciated growth story with the potential to add 400 stores over the next five years, UBS Securities said in a note Thursday.
The brokerage said this should drive a roughly 13.5% earnings per share compound annual growth rate between 2025 and 2030.
The company is also expected to navigate the ongoing tariff environment uncertainty and cost inflation pressures from elevated oil prices better than many of its mom & pop rivals, according to the note.
The brokerage said Boot Barn's "strong" sales and EPS growth outlook justify a roughly 24x price-earnings ratio, a view reinforced by meetings with the management.
UBS Securities has a buy rating and a $272 price target on the stock.
Shares of Boot Barn were up more than 2% in Thursday trading.
Price: 168.81, Change: +3.46, Percent Change: +2.09
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