Skechers downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Alex Straton downgraded Skechers to Equal Weight from Overweight with a price target of $46, down from $54. Straton views 2023 as a tale of two halves, with inventory, recession fears, and EPS risk driving stocks to a bottom sometime in Q1, the analyst tells investors in a research note. The stock is sitting at the upper end of its historical valuation range, and a re-rating may be unlikely while potentially below-expectations FY23 EPS guidance is digested and management re-builds trust via EBIT-flow-through consistency.