Analysts Are Bullish on These Consumer Goods Stocks: CRI, CRWS

By Jason Carr

There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Carter’s (NYSE: CRI) and Crown Crafts (NASDAQ: CRWS) with bullish sentiments.

Carter’s (NYSE: CRI)

In a report released today, Susan Anderson from FBR Capital reiterated a Buy rating on Carter’s (NYSE: CRI), with a price target of $111. The company’s shares opened today at $88.06.

Anderson said:

“We looked at the potential impact to CRI revenues due to Amazon and Skip Hop for 2017 and conclude that 2017 guidance is conservative with little upside included for both growth initiatives. We believe this provides a cushion to CRI guidance if traditional wholesale (dept stores, mass) is worse than expected (which we do not expect based on strong 1Q replenishment), and potential upside opportunity if the 1Q trends continue the rest of the year. CRI stock has been pressured by concerns over exposure to dept stores, but we believe this weakness is more than offset with Amazon/Skip Hop growth. Additionally, we believe 2Q is trending significantly better than 1Q based on solid spendtrend data for children’s (avg +6% in April/May) vs. -2.5% in 1Q17. We expect CRI to see multiple/stock expansion (CRI -15% over past year vs. SP500 +17%), as we believe CRI will report a strong 2Q (late July).”

According to TipRanks.com, Anderson is a 1-star analyst with an average return of -0.5% and a 47.4% success rate. Anderson covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and ClubCorp Holdings.

Currently, the analyst consensus on Carter’s is Moderate Buy and the average price target is $108, representing a 22.6% upside.

In a report issued on June 13, Oppenheimer also reiterated a Buy rating on the stock with a $105 price target.
Crown Crafts (NASDAQ: CRWS)

Roth Capital analyst Dave King reiterated a Buy rating on Crown Crafts (NASDAQ: CRWS) yesterday and set a price target of $9. The company’s shares opened today at $7.10, close to its 52-week low of $7.05.

King noted:

“We maintain our Buy to reflect CRWS’ strong cost- containment practices and focus on cash flow generation and shareholder returns.”

According to TipRanks.com, King is ranked 0 out of 5 stars with an average return of -11.6% and a 38.6% success rate. King covers the Consumer Goods sector, focusing on stocks such as Differential Brands Group, American Apparel Inc, and Sequential Brands.

Crown Crafts has an analyst consensus of Moderate Buy, with a price target consensus of $9.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.