Citi Trends, Inc. (NASDAQ:CTRN) is one of the The best microcap stocks to invest in according to analysts.
On December 2, the company released earnings for the third quarter, reporting revenue of more than $197 million, up 10% from revenue in the same period last year and beating market expectations by nearly $10 million. In terms of guidance, the company expects fourth-quarter comparable store sales to increase in the single digits and gross margin is expected to be in the range of 40% to 41%.
On December 3, DA Davidson analyst Michael Baker raised his price target on Citi Trends, Inc. (NASDAQ:CTRN) shares to $52 from $43 and maintained a Buy rating on the stock. In a note to investors, the analyst opined that there was a long way to go in this merchandise-driven shift, as the company’s comp momentum, in the low single to double digits, continued through the holidays. Baker further added that inventory was new, differentiated and on-trend, and a high fixed cost structure meant above-average incremental margins.
Citi Trends, Inc. (NASDAQ:CTRN) operates as a value retailer of fashion apparel, accessories and home goods.
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