Factor Model (net +1.0)
Factor Model
net +1.0 3.0 / 10Goldman Sachs Raises CRI Target to $38
Watch: Watch Q1 2026 earnings delivery and margin commentary for validation of growth and profitability trends underlying the upgrade.
Full analysis
Goldman Sachs upgraded Carter's from Sell to Neutral and raised its target to $38 from $29 on April 9, 2026, citing potential sales growth through market share gains in the $50,000–$200,000 household income segment and better digital marketing. CRI reported Q4 2025 net sales of $925 million, up 8%, and adjusted EPS of $1.90. Fiscal 2026 guidance forecasts low- to mid-single-digit sales and operating income growth, highlighting cautious optimism on growth and margin recovery.
Goldman’s upgrade reflects confidence that Carter’s can overcome recent margin compression by expanding market share and leveraging improved digital marketing strategies.
Evidence
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