Steven Madden (SHOO – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Janine Stichter from BTIG maintained a Buy rating on the stock and has a $46.00 price target.
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Janine Stichter’s rating is based on the strategic acquisition of Kurt Geiger by Steven Madden, which highlights the company’s ability to leverage its strong financial position to make significant acquisitions. The purchase is expected to be accretive to earnings per share immediately, given Kurt Geiger’s healthy EBITDA margins and the potential for considerable growth, particularly in the U.S. market.
The acquisition aligns with Steven Madden’s strategy of broadening its product mix and entering more sizable deals, without being transformational. With Kurt Geiger’s successful transformation into a brand with a strong focus on accessible luxury handbags, the acquisition offers a complementary mix and aligns well with Steven Madden’s existing business. Furthermore, the anticipated synergies and the ability to mitigate tariff impacts over time provide a positive outlook for the acquisition’s long-term impact on the company’s financial performance.
SHOO’s price has also changed slightly for the past six months – from $43.280 to $39.670, which is a -8.34% drop .