Analyst John Kernan from TD Cowen maintained a Buy rating on Skechers USA (SKX – Research Report) and decreased the price target to $63.00 from $68.00.
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John Kernan has given his Buy rating due to a combination of factors that highlight Skechers USA’s strong market position and growth potential. The brand’s favorable position, coupled with its innovation and market share gains, contribute positively to its outlook. Despite some concerns regarding investments in capital expenditures and selling, general, and administrative expenses for fiscal year 2025, as well as uncertainties surrounding tariffs and consumer reactions to inflation, the demand in the US market remains strong.
Furthermore, Skechers has shown resilience in its international markets, particularly in the Asia-Pacific region excluding China and the EMEA region, which are expected to contribute to sales growth. The company’s valuation presents an upside potential, especially if favorable tariff deals are reached. Although foreign exchange impacts and tariffs pose challenges, Skechers is positioned to exceed its sales guidance, providing confidence in its financial performance. The price target of $63 reflects these considerations, indicating a positive outlook for the stock.
Kernan covers the Consumer Cyclical sector, focusing on stocks such as Ralph Lauren, Nike, and TJX Companies. According to TipRanks, Kernan has an average return of 6.8% and a 51.11% success rate on recommended stocks.
In another report released on April 21, Williams Trading also maintained a Buy rating on the stock with a $58.00 price target.