UBS raised its price target on Buckle Inc. (NYSE:BKE) to $54 from $51 while keeping a Neutral rating, highlighting the retailer’s strong fundamentals but limited near-term upside.
The analysts said Buckle’s second-quarter report showed resilience, with the company effectively navigating tariff headwinds while sustaining momentum. They highlighted the company’s ability to drive long-term sales growth, maintain high EBIT margins, and consistently return cash to shareholders.
However, UBS warned that earnings growth was likely to moderate in the near term as margins trend lower. Looking beyond fiscal 2025, the firm forecast a 5% five-year EPS CAGR, supported by a high single-digit dividend yield and justified by a roughly 12x P/E multiple.
UBS concluded that while Buckle’s long-term playbook remained solid, it saw more attractive opportunities across its coverage universe, leaving the stock at Neutral.
