Skechers initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Skechers with an Overweight rating and $83 price target. The company has a “compelling” top- and bottom-line growth profile, the analyst tells investors in a research note. The firm believes the most attractive, “and perhaps underappreciated,” aspect of the Skechers story is both its revenue and earnings growth opportunity. The firm expects the company to grow earnings at 20% annually over the next three years, ranking it highest among softline peers. Wells sees continued multiple expansion for the shares as the market begins to recognize Skechers’ growth potential.