Carter's (CRI) PT Lowered to $60 at Evercore ISI

Evercore ISI analyst Warren Cheng lowered the price target on Carter's (NYSE: CRI) to $60.00 (from $80.00) while maintaining a In Line rating.

The analyst comments "We think CRI’s stunning implied ~15-point 2H comp guide-down is a result of a combination of 1) a transitory factor of very heavy category promotions / excess inventories at the moment… which coupled with CRI’s decision to maintain relatively strong pricing discipline is killing DTC traffic; 2) a more structural factor of significant pressure from digital competition, especially Amazon on the discretionary side of CRI’s assortment (which didn’t exist during the last recession). Our view on the stock hasn’t really changed: we expect sales and earnings risk to remain skewed to the downside in the near-term, but see multiple potential positive catalysts for the company on a slightly longer horizon (we think this is why the stock is only -5% today on a 15 pt 2H retail comp guide-down)."

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