Analyst John Kernan from TD Cowen maintained a Buy rating on Skechers USA (SKX – Research Report) and decreased the price target to $83.00 from $93.00.
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John Kernan’s rating is based on several factors that highlight Skechers USA’s potential for growth despite certain challenges. The company is making significant investments to enhance its distribution points and improve supply chain efficiency, which are expected to support its long-term growth objectives. Although the earnings per share (EPS) recently fell short of expectations due to foreign exchange headwinds and macroeconomic weaknesses in China, the brand continues to maintain its appeal through value and innovation.
Furthermore, Skechers is strategically positioned to mitigate the impact of current tariffs, which should help stabilize its financial performance. The domestic direct-to-consumer and wholesale channels are projected to expand, supported by the opening of 180-200 new stores in the upcoming fiscal year. While the company faces pressures on its margins from certain international markets, particularly in the first half of the year, the overall gross margin is expected to improve later in the year, providing a more favorable financial outlook.
In another report released on January 28, Williams Trading also maintained a Buy rating on the stock with a $85.00 price target.