What Happened?
Shares of sporting goods retailer Academy Sports & Outdoor (NASDAQ: ASO) jumped 3.2% in the afternoon session after Morgan Stanley raised its price target on the stock to $55 from $52. The firm, however, kept its "Equal-Weight" rating on the shares.
This move followed a similar action from the previous day when Truist Securities also lifted its price target on the company to $59 from $57, while maintaining a "Hold" rating. The adjustments came as Morgan Stanley noted that secular growth areas like sporting goods were well-positioned to outperform in 2026. The series of price target increases from analysts suggested a more positive outlook on the stock's potential value, even without formal rating upgrades.
After the initial pop the shares cooled down to $58.08, up 3.4% from previous close.
Is now the time to buy Academy Sports? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Academy Sports’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 5.6% on the news that the White House announced a one-year delay on planned tariff hikes for many home goods, including furniture and cabinets.
The decision kept the current 25% tariff rate in place, averting a scheduled increase to as high as 50% for items like kitchen cabinets and bathroom vanities that was set to take effect on New Year's Day. This move provided significant relief for retailers, as higher tariffs typically lead to increased costs. Companies would have faced the difficult choice of absorbing the extra expense, which hurts profitability, or passing it on to customers through higher prices, which could reduce sales. The news was met with investor optimism, sparking a rally in the sector.
Academy Sports is up 11.4% since the beginning of the year, and at $58.08 per share, it is trading close to its 52-week high of $58.51 from January 2026. Investors who bought $1,000 worth of Academy Sports’s shares 5 years ago would now be looking at an investment worth $2,618.
The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave, it’s free.
