Piper starts Skechers with Neutral on uncertain consumer

Piper Sandler analyst Abbie Zvejnieks last night initiated coverage of Skechers with a Neutral rating and $42 price target. Skechers has "favorable secular tailwinds of comfort and convenience and a significant margin expansion opportunity," but the stock’s current valuation is fair given the uncertain consumer spending environment, Zvejnieks tells investors in a research note. The analyst thinks the company’s sales trends "could be lumpy" in the near term given its exposure to a value consumer and China.