Why Boot Barn Stock Soared on Monday

Specialty shoe and apparel retailer Boot Barn Holdings (NYSE: BOOT) sure was alive and kicking on Monday, as far as its stock was concerned. It was the subject of an analyst upgrade that day, and as a result, its equity rose by more than 10% across the trading session.

Western gear for the win

This hit the headlines early that morning, with Jefferies analyst Corey Tarlow upgrading his recommendation on Boot Barn. He now believes the company rates a buy, one peg higher than his former hold designation. He left his $195 per share price target intact, however.

According to reports, Tarlow considers Boot Barn to be something of a victim of negative investor sentiment. This stands to reason, as its share price has eroded by almost 16% so far this year.

In the analyst's view, this is unwarranted, as its sales figures have demonstrated resilience while the company continues to build out its store network. Tarlow also wrote admiringly of the company's stable fundamentals, supported by encouraging levels of consumer demand.

An outlier in a good way

Life in the retail industry is never easy, with profit margins typically modest and most companies in the sector beholden to trends. Considering that Boot Barn is doing rather well, especially as it operates in a niche, with decent top-line growth and healthy margins of late. As such, it's a standout in the industry, and its stock is well worth consideration as a buy.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool recommends Boot Barn. The Motley Fool has a disclosure policy.