Shares of Superior Group of Companies Inc (NASDAQ:SGC) were climbing in early trading on Tuesday.

Underlying macro trends support growth in the branded products and healthcare apparel segments, according to DA Davidson.

The Superior Group of Companies Analyst: Keegan Cox initiated coverage of Superior Group of Companies with a Buy rating and price target of $24.

The Superior Group of Companies Thesis: The company is poised to benefit from the continued rebound of the $4.1 billion healthcare apparel market in 2024, Cox said in the initiation note.

Check out other analyst stock ratings.

While branded products are "inflecting in an improving economy," Superior Group's six acquisitions over the last seven years would be another key growth driver, the analyst stated.

Secular trends like nearshoring "should drive continued revenue growth" in the company's Contact Center business, which is the fastest growing and most profitable segment, he added.

"SGC is taking share in the contact center market with their niche positioning, targeting small to mid-sized companies with potential for share gains with expansion from both new and existing customers," Cox wrote. "We believe this segment will continue to lead in profitability for SGC and expect margins to recover in 2024 as price increases begin to roll through customers' contracts," he added.

SGC Price Action: Shares of Superior Group of Companies had risen by 0.19% to $20.92 at the time of publication on Tuesday.

Now Read: Indian Stocks Tumble The Most Since March 2020 With Modi's Party Set To Lose Majority

Photo: PeopleImages.com – Yuri A/Shutterstock