Barclays Starts Coverage Of US Specialty Retail

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.

Overall, the analyst initiated coverage of 26 companies and named Nike Inc NKE as the top pick — a company moving heavily into direct-to-consumer sales.

Ratings And Price Targets: 

• Nike: Overweight, $111 price target. 
• American Eagle Outfitters AEO: Equal-weight, $17 price target.
• Burlington Stores Inc BURL Overweight, $239 price target.
• Capri Holdings Ltd CPRI Equal-weight, $37 price target.
• Dick’s Sporting Goods Inc DKS Equal-weight, $45 price target.
• Foot Locker, Inc. FL Equal-weight, $48 price target.
• G-III Apparel Group, Ltd. GIII Equal-weight, $27 price target.
• Hanesbrands Inc. HBI Equal-weight, $16 price target.
• Kontoor Brands Inc KTB Equal-weight, $35 price target.

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