Rating upgraded by Susquehanna
Skechers (SKX) stock rose 2.8% as of 2:49 PM ET today as Susquehanna upgraded its rating to “positive” from “neutral,” citing growing momentum in Skechers’s business. Susquehanna raised its price target for Skechers stock to $37 from $32.
Skechers stock has risen over 14% since the company announced its results for the fourth quarter of 2018 in February. Skechers delivered strong earnings in the fourth quarter, which nicely beat analysts’ expectations even though the company’s sales lagged behind estimates. Skechers’s fourth-quarter adjusted EPS increased 47.6% on a year-over-year basis to $0.31 against analysts’ forecast of $0.23. Higher sales, improved margins, and a lower average share count due to share repurchases boosted the company’s fourth-quarter bottom line.
Skechers’ fourth-quarter sales increased 11.4% to $1.08 billion but missed analysts’ estimate by 1.7%. Currency headwinds dragged down Skechers’ fourth-quarter sales by $22.3 million.
Positive reaction to Q4 results
Several analysts raised their price targets for Skechers stock following its fourth-quarter results. On February 8, we saw the following price target upgrades to Skechers stock.
- Morgan Stanley: $29 from $27
- Wedbush: $31 from $29
- Cowen and Company: $34 from $28
- Stifel: $36 from $32
On February 11, UBS increased its price target for Skechers stock to $37 from $32.
As of the time of writing this report, the average 12-month price target for Skechers stock was $35.64. Skechers stock is now rated a “buy” by seven analysts while six analysts have “hold” recommendation. None of the analysts currently have a “sell” recommendation.