Evaluating Carter's: Insights From 4 Financial Analysts

Ratings for Carter's CRI were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $75.75, a high estimate of $80.00, and a low estimate of $66.00. This upward trend is apparent, with the current average reflecting a 10.99% increase from the previous average price target of $68.25.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Carter's's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Carter's. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Carter's compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Carter's's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Carter's's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Carter's analyst ratings.

Delving into Carter's's Background

Carter's Inc makes apparel for babies and children under brand names including Carter's and OshKosh B'gosh. It sells its products through a multi-channel business model, which includes retail stores, eCommerce, and wholesale sales channels, as well as retail omnichannel capabilities in the United States and Canada, which enables it to reach a broad range of consumers around the world. The company operates in three segments; U.S. Retail, U.S. Wholesale, and International. The majority of Carter's sales are in the U.S. and through Carter's brand. The company predominantly sources products through contract manufacturers in Asia. It has multiple distribution centers in the U.S., in addition to distribution centers in Canada and Asia that serve international customers.

Carter's: A Financial Overview

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Decline in Revenue: Over the 3 months period, Carter's faced challenges, resulting in a decline of approximately -3.29% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Carter's's net margin excels beyond industry benchmarks, reaching 8.19%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Carter's's ROE excels beyond industry benchmarks, reaching 8.31%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Carter's's ROA stands out, surpassing industry averages. With an impressive ROA of 2.81%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Carter's's debt-to-equity ratio is below the industry average at 1.44, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.