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DA Davidson Raises Citi Trends (CTRN) PT to $40, Cites Growth from Closeout Product Strategy

On Tuesday, DA Davidson increased its price target on Citi Trends Inc. (NASDAQ:CTRN) to $40 from $29, while maintaining a Buy rating on the shares. The firm’s optimism is driven by Citi Trends’ strategy of incorporating more extreme value closeout products, which is expected to boost comparable store sales and associated higher-margin flow-through against a relatively stable cost base.

A glossy storefront of a value retailer, filled with fashionable apparel and accessories.

DA Davidson projects this strategy will improve Citi Trends’ financial performance and drive EBITDA to $44 million by 2027. This is substantial recovery from an $8 million loss over the past 12 months. Citi Trends reported total sales of ~$211 million for FQ4 2024, with comparable store sales growing by 6.4% year-over-year, while the inventory was down 6%.

For the full FY2024, total sales were $753.1 million, with comparable store sales increasing by 3.4% on a 52-week to 52-week basis. For FY2025, the company projects low to mid-single-digit comparable sales growth. The company ended FQ4 with a strong cash position of $61 million and no debt, all while operating 591 stores. Citi Trends now plans to open up to 5 new stores and close up to 5 existing stores.

Citi Trends Inc. (NASDAQ:CTRN) is a value retailer of fashion apparel, accessories, and home goods. The company was formerly known as Allied Fashion and changed its name to Citi Trends in 2001.

While we acknowledge the potential of CTRN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CTRN and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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