Evercore ISI downgrades Carter's Incorporated to "underperform" rating: Expected profit downturn risk in 2025.

Investment bank Evercore ISI has downgraded its stock rating for Carter's Incorporated (CAT.US) to "underperform the market", with a target price of $365. The bank believes that the profit and sales decline in Carter's Incorporated's third quarter could be a potential harbinger of downside risks to earnings in 2025, as the company's management may ultimately face issues with rising inventory in the construction equipment channel. Lead analyst David Raso from Evercore ISI stated that the weakness in emerging markets following the election of President Trump could put pressure on Carter's Incorporated, and that in the face of relatively low commodity prices and Trump's support for oil and gas extraction policies, capital expenditure in the oil and gas industry may not respond as favorably. Furthermore, with Carter's Incorporated's stock price approaching 19 times the earnings per share forecasted by Evercore ISI for the 2025 fiscal year, analysts believe that the stock may have difficulty keeping up with other companies in the industry in the short to medium term. At the same time, Evercore ISI has also downgraded its stock rating for Illinois Tool Works Inc. (ITW.US) to "underperform the market", with a target price of $255. Analysts believe that the company is a strong operator and profit expansion machine, but lacks organic sales growth, especially in international markets, which could result in profit expansion lagging behind average levels in 2025. Evercore ISI has also downgraded its stock rating for power management company Eaton Corp. Plc (ETN.US) from "outperform the market" to "in line with the market", with a target price of $389.