Needham analyst Tom Nikic has maintained their neutral stance on SKX stock, giving a Hold rating on April 25.
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Tom Nikic has given his Hold rating due to a combination of factors surrounding Skechers USA’s recent acquisition announcement. The company is set to be acquired by 3G Capital for $63 per share, which is a significant premium over the previous closing price. This acquisition values the company at approximately $9 billion, a valuation that reflects a reasonable multiple on sales and EBITDA.
Despite the attractive purchase price, the deal’s completion faces uncertainties due to the macroeconomic environment, including tariffs and consumer sentiment. Additionally, the potential for a higher bid from another acquirer seems limited, given the challenges of the current market and Skechers’ complex relationships with larger competitors. As a result, the Hold rating reflects the likelihood that the acquisition will proceed without competing offers, given the control exerted by the Greenberg family’s supervoting shares.
Nikic covers the Consumer Cyclical sector, focusing on stocks such as Steven Madden, Nike, and Skechers USA. According to TipRanks, Nikic has an average return of 3.5% and a 40.67% success rate on recommended stocks.
In another report released on April 25, Piper Sandler also maintained a Hold rating on the stock with a $45.00 price target.