Needham analyst Tom Nikic has maintained their neutral stance on SKX stock, giving a Hold rating on April 11.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tom Nikic has given his Hold rating due to a combination of factors impacting Skechers USA’s stock. While the company had a strong performance in the first quarter, exceeding expectations, there are significant concerns about the impact of tariffs. These tariffs are expected to create a substantial headwind on the company’s gross margins, which could hinder the stock’s performance in the near term.
Additionally, the uncertainty surrounding the tariff situation makes it difficult to provide clear guidance, leading to a reduction in the earnings per share forecasts for the upcoming fiscal years. With the current trading multiples reflecting these challenges, the stock appears to be fairly valued, justifying the Hold rating. This cautious stance reflects the balance between the company’s recent positive performance and the potential risks from external economic factors.
According to TipRanks, Nikic is a 3-star analyst with an average return of 0.6% and a 39.60% success rate. Nikic covers the Consumer Cyclical sector, focusing on stocks such as Nike, Skechers USA, and Steven Madden.
In another report released on April 11, Piper Sandler also maintained a Hold rating on the stock with a $50.00 price target.