Boot Barn Holdings (BOOT) is poised to benefit from secular trends within the Western wear category and has the potential to drive 20% per-share earnings growth in fiscal 2026, BofA Securities said Wednesday.

The brokerage said it hosted a meeting with the retailer's management and was encouraged by its positive preliminary fiscal Q3 results, led by an increase of 8.6% in same-store sales.

"Management credited its strong inventory flow going into the holidays as a key driver of the company's success in 3Q," BofA analyst Christopher Nardone said in a note to clients. "Denim was called out as a very strong category over the holiday season in addition to giftables, which is smaller category."

The company is on track to reach 460 stores by the end of fiscal 2025, according to BofA. "Heading into F26, we feel confident about the company's pipeline of stores and think 15% store growth will be feasible," the analyst said.

BofA raised its full-year EPS outlook to $5.73 from $5.53 and its price objective on the stock to $192 from $187 while reiterating its buy rating.

The company's shares were up 1.3% in recent trading.

Price: 151.96, Change: +1.88, Percent Change: +1.25