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CRI: Tighter Shareholder Rules And Completed Buyback Will Shape Future Outlook

Improved Margins And Modest Revenue Outlook Will Balance Market Headwinds

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CRI
AnalystConsensusTarget
Not Invested
Published 24 Sep 2024

Update shared on 10 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-42.5%
7D
3.0%

Analysts have modestly adjusted their price target on Carter's, reflecting slightly lower discount rate and valuation multiple assumptions that leave fair value effectively unchanged at about $29.50 per share.

What's in the News

  • Carter’s, Inc. amended multiple sections of its By-Laws on November 13, 2025, tightening rules around who can call special shareholder meetings and what business may be brought before such meetings, and aligning certain provisions with Delaware corporate law (company filing).
  • The By-Law changes require shareholders nominating directors to hold shares of record through the meeting date and satisfy expanded disclosure, notice, and ongoing information update requirements (company filing).
  • New By-Law provisions allow the company to request additional information from shareholders proposing director nominees or other business and permit the Board to interview director nominees, enhancing board oversight of the nomination process (company filing).
  • From June 29, 2025 to September 27, 2025, Carter’s repurchased no additional shares, but has completed the previously authorized buyback of 1,418,693 shares, representing 3.86% of shares outstanding, for $97.57 million under the February 25, 2022 program (company disclosure).

Valuation Changes

  • Fair Value: Unchanged at approximately $29.50 per share, indicating no material shift in the intrinsic value estimate.
  • Discount Rate: Fallen slightly from about 11.72% to roughly 11.64%, reflecting a marginally lower perceived risk or cost of capital.
  • Revenue Growth: Essentially unchanged, edging down insignificantly from about 7.39% to 7.39% on an annual basis.
  • Net Profit Margin: Stable, with the long term margin assumption effectively flat at around 3.77%.
  • Future P/E: Eased slightly from roughly 14.21x to 14.18x, implying a marginally lower valuation multiple applied to forward earnings.

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Disclaimer

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