Cowen Analysts boost Skechers Stock Price
2023.01.23 11:25
Cowen Analysts boost Skechers Stock Price
By Tiffany Smith
Budrigannews.com – Skechers United States was upgraded by Cowen analysts to Outperform from Market Perform, and the company’s price target for the stock was raised to $65 from $48.
In a note to clients, the analysts said that their survey and channel work suggest a significant upside for the stock. During Monday’s trading, Skechers shares have gained more than 3%.
The analysts wrote, “Skechers remains the #2 preferred casual sneaker brand in the United States with a preference share of 19% compared to Nike’s 24% preference share.”
Additionally, he stated that Skechers.com’s Similarweb Unique Visitors, or website traffic, increased 38% year over year, indicating significant gains during the holiday season.
“We are modeling domestic wholesale growth of +6% y/y in FY23, down from +26% y/y in FY22. “We’re modeling domestic DTC sales up +2.3% y/y in the first half of next year relative to +15% y/y growth in the channel in Q3:22,” the analysts added. “H1:23 domestic DTC estimates could be conservative.”
“We’re modeling sales growth of +12% for FY23, compared to Consensus’s +9%, so it’s possible that consensus underestimates momentum’s durability. We project upside to Consensus sales and EPS estimates in the fourth quarter and anticipate that management will be able to provide guidance for FY23 that meets growth expectations.”
