By Sam Boughedda 

Academy Sports + Outdoors (NASDAQ:) was began with an Outperform score and $80 per share worth goal by Baird analysts on Wednesday.

The analysts described the corporate as a “leading sporting goods/outdoor recreation retailer, with a broad/diversified assortment, value-oriented pricing strategy, best-in-sector store productivity, and significant unit growth runway.”

“While some market participants still believe/fear ASO is materially ‘over-earning’, several structural/self-help business model improvements implemented pre-pandemic have created a strong foundation for continued profitable growth,” they wrote.

The analysts added that the sporting items and the outside sector is massive and fragmented, however ASO can develop its 5% share because it has a “broad/diversified assortment and value-oriented pricing strategy.” In addition, they acknowledged structural enterprise mannequin enhancements by ASO have created a robust basis for future development.

“The stock has been a homerun since the October 2020 IPO, but with ~LDD% EBIT margins sustainable and footage growth accelerating, shares simply look too inexpensive at ~9x FY23E GAAP EPS,” the analysts concluded.