Carter’s shares rose 3.5% in premarket trading on Monday after Wells Fargo upgraded the children’s apparel retailer to Equal Weight from Underweight and raised its price target to $42 from $30. Analyst Ike Boruchow cited improving execution under new leadership, continued momentum in direct-to-consumer operations, and the potential impact of lower tariff rates as key reasons for the more constructive outlook. Wells Fargo also raised its fiscal 2026 earnings-per-share estimate to $3.30 from $3.00 and its fiscal 2027 forecast to $3.80 from $3.50, both above Wall Street consensus estimates of $3.22 and $3.61, respectively. The new $42 price target is based on 11 times projected fiscal 2027 earnings per share, reflecting the firm’s view that operational improvements and tariff-related benefits could support additional upside.
Carter’s IncWells Fargo upgraded Carter's to Equal Weight and raised price target to $42, citing improving execution and tariff benefits.
Wells Fargo & Company