Barclays is out Neutral on U.S. specialty retail, apparel and e-commerce stocks on the basis of an an improving tariff backdrop that's offset by sector-wide inventory build, negative mall traffic and general oversupply.
Analyst Adrienne Yih said she has a positive view of off-price retail and wholesale brands with pricing power that are moving to direct-to-consumer, and a negative view of mall-based retailers that sell commoditized products.
Ratings And Price Targets:
- Nike: Overweight, $111 price target.
- American Eagle Outfitters (NYSE: AEO): Equal-weight, $17 price target.
- Burlington Stores Inc (NYSE: BURL) Overweight, $239 price target.
- Capri Holdings Ltd (NYSE: CPRI) Equal-weight, $37 price target.
- Dick’s Sporting Goods Inc (NYSE: DKS) Equal-weight, $45 price target.
- Foot Locker, Inc. (NYSE: FL) Equal-weight, $48 price target.
- G-III Apparel Group, Ltd. (NASDAQ: GIII) Equal-weight, $27 price target.
- Hanesbrands Inc. (NYSE: HBI) Equal-weight, $16 price target.
- Kontoor Brands Inc (NYSE: KTB) Equal-weight, $35 price target.