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Wedbush Upgrades Skechers after 3Q Results

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Recent analyst actions on Skechers

Skechers’ (SKX) solid 3Q17 results were followed by a host of analyst actions. Wedbush raised Skechers to an “outperform” from a “market perform” rating, while increasing its target price to $35 from $25. Analyst Christopher Svezia of Wedbush commented in a client note, “While we felt there was opportunity developing in the story looking to FY18, key drivers inflected sooner than we expected, particularly around international growth and gross margin, which were the largest contributors to the upside and our revised estimates.”

Morgan Stanley raised its price target for the company to $31 from $28.5, saying Sketchers is a “stronger company than the market has historically given it credit.” Cowen and Company also increased SKX’s price target to $36 from $35, while maintaining its “outperform” rating.

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Wall Street’s recommendations on Skechers

Skechers is covered by 12 Wall Street analysts who have jointly rated its stock a 1.8 on a scale where one is a strong buy and five is a sell. Five different brokerage houses have upgraded the company in the last six months.

83% of analysts including B. Riley, OTR Global, Citigroup, and Susquehanna recommend buying Skechers stock. The remaining 17% of analysts suggest holding it. There are no sell recommendations on SKX.

In comparison, Under Armour (UAA), Nike (NKE), Lululemon Athletica (LULU), and Columbia Sportswear (COLM) are rated 3.1, 2.3, 2.3, and 2.4, respectively.

ETF investors seeking to add exposure to SKX can consider the First Trust Consumer Discretionary AlphaDEX Fund (FXD), which invests ~1.5% of its portfolio in the company.

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