Analyst cites improved execution, direct-to-consumer momentum, and tariff benefits as drivers for the revised outlook.
Carter’s (NYSE:CRI) shares climbed 3.5% in premarket trading after Wells Fargo upgraded the stock to Equal Weight from Underweight and raised its price target to $42 from $30. The brokerage highlighted stronger execution under new leadership and growth in direct-to-consumer sales as key factors behind the shift.
The firm noted that recent management changes and refined strategies are enhancing Carter’s operating model. Analyst Ike Boruchow also pointed to potential upside from lower tariff rates, which could further support earnings growth. The upgrade follows expectations of better-than-anticipated second-quarter comparable sales.
Wells Fargo revised its fiscal 2026 earnings-per-share estimate higher, anticipating that upcoming earnings and guidance could exceed market expectations. The brokerage expects improved profit margins and business trends to act as catalysts for the stock.