UBS sees ‘weak’ growth persisting at Wolverine World Wide

UBS analyst Jay Sole expects “weak” growth to persist at Wolverine World Wide, limiting the stock’s valuation expansion. The company’s footwear brands do not stand out versus peers and its high wholesale exposure should limit long-term sales growth, the analyst tells investors in a research note. UBS Evidence Lab’s 2023 global athletic wear survey reinforces conviction on this view, says the firm. UBS says the survey shows Merrell and Saucony’s brand awareness remains below peers’ average and relatively stagnant. As such, the firm believes Wolverine will likely have a difficult time attracting new customers to its key brands. It keeps a Neutral rating on the shares with a $9 price target.