"Sentiment Victim": investment bank Jefferies upgraded its rating on shares of retailer Boot Barn

Investment bank Jefferies upgraded the rating of securities mid-cap retailer Boot Barn Holdings, which specializes in the sale of clothing and shoes in the Western style, and now recommends buying them. The company, whose quotations have fallen since the beginning of the year, almost by 16%, has become a victim of negative investor sentiment, but this is unjustified, analysts believe. Against that backdrop, Boot Barn shares jumped more than 10% on April 6.

Jefferies improved its recommendation for Boot Barn shares from "hold" to "buy", Motley Fool writes. The target price remained the same - $195, which means the potential growth of almost 31% to the value of securities at the close of trading on April 6. On that day, they soared 10.3% to $149 on the back of an upgrade by Jefferies.

The recent drop in Boot Barn's stock price has created an attractive entry point into the company's equity, according to Jefferies analyst Corey Tarlow, whose opinion is cited by StockStory. Since the beginning of the year - even including the April 6 rally - the retailer's stock has fallen nearly 16%.

The company was a victim of negative investor sentiment, Tarlow believes (quoted in Motley Fool). StockStory writes that they were triggered by the escalating conflict in the Middle East and rising oil prices, as this could lead to a new wave of inflation and buyers cutting budgets for non-essential spending.

Tarlow calls investors' reaction unwarranted as Boot Barn's sales are steady and its store network is growing. In its fiscal third quarter, which ended Dec. 27, the company's net revenue rose 16% year-over-year to $705.6 million. The retailer opened 25 stores in the period, increasing its network to 514 locations.

The retailer's stable fundamentals support "encouraging levels of consumer demand," Tarlow writes.

Wall Street generally shares Tarlow's optimism, with 15 analysts recommending buying Boot Barn shares and only one recommending holding.

Most retailers depend on trends; Boot Barn is a niche player that stands out from the competition, writes Motley Fool freelance analyst Eric Volkman.

In January, BofA Securities, the investment arm of Bank of America, listed Boot Barn as one of ten small and mid-cap companies that investors should look at.

Wall Street analysts' average target price for the company's securities is $237, up 59% from their closing price on April 6.