Skechers Downgraded to Hold Amid Acquisition by 3G Capital with Limited Upside Potential

In a report released today, Jim Duffy from Stifel Nicolaus downgraded Skechers USA (SKX – Research Report) to a Hold, with a price target of $63.00.

Jim Duffy’s rating is based on the recent announcement that Skechers USA is set to be acquired by 3G Capital for $63 per share. This acquisition price provides a 28% premium over the recent closing price, which suggests limited upside potential for the stock beyond the agreed transaction price. Consequently, Duffy has downgraded the stock to a Hold rating as the current trading price is nearing the acquisition price, indicating minimal room for further appreciation.
Given the unanimous approval by the Board of Directors and the significant voting power held by the company’s founder and CEO, the likelihood of the deal closing as planned is high. The transaction is expected to be completed in the third quarter of 2025, after which Skechers will become a private entity. With the stock’s price converging to the acquisition price and low regulatory or closing risk, Duffy sees little reason for investors to buy or sell aggressively at this point, thus justifying the Hold rating.