Skechers stock price target increased, buy rating on strategic shift

EditorNatashya Angelica
Published 01/08/2025, 10:21 AM
SKX
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Skechers, known for its footwear and apparel, has been performing well in the market, with analyst targets ranging from $65 to $100 per share. The revised price target from TD Cowen signals a belief in the company's continued growth and ability to satisfy investor expectations in the coming years. For deeper insights into Skechers' valuation and growth prospects, including 6 additional ProTips and comprehensive financial analysis, visit InvestingPro.

Skechers, known for its footwear and apparel, has been performing well in the market, with analyst targets ranging from $65 to $100 per share. The revised price target from TD Cowen signals a belief in the company's continued growth and ability to satisfy investor expectations in the coming years. For deeper insights into Skechers' valuation and growth prospects, including 6 additional ProTips and comprehensive financial analysis, visit InvestingPro.

The optimistic outlook is partly due to a strategic shift towards direct-to-consumer (DTC) channels and favorable geographic market positions, which are expected to support key financial metrics. Gross Margin, EBIT margin, and Return on Invested Capital (ROIC) are anticipated to benefit from these shifts.

TD Cowen's endorsement extends beyond Skechers, as the firm also expresses a positive stance on other companies in the industry. Amer Sports, Deckers, and Ralph Lauren (NYSE:RL) are among those favored by the analysts, all of which are expected to leverage the mix shift to DTC channels and strategic geographic presence to bolster their financial performance.

Skechers, known for its footwear and apparel, has been performing well in the market, with analyst targets ranging from $65 to $100 per share. The revised price target from TD Cowen signals a belief in the company's continued growth and ability to satisfy investor expectations in the coming years. For deeper insights into Skechers' valuation and growth prospects, including 6 additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, Skechers USA Inc (NYSE:SKX). has been the focus of several significant developments. The company has amended its bylaws to allow the issuance of uncertificated shares, a move that aligns with a growing trend among companies to streamline transactions and reduce administrative burdens. This change does not affect the rights or privileges of the shareholders, but eliminates the need for physical certificates.

Skechers has also been in the spotlight with various firms adjusting their outlooks for the company. Piper Sandler initiated coverage on Skechers, assigning a Neutral rating due to potential challenges in the China market and inventory concerns. Despite these potential hurdles, Skechers maintains a healthy gross profit margin of 53.12% and has achieved a revenue growth of 10.1% over the last twelve months.

Williams Trading has shown confidence in Skechers, adjusting their stock price targets upward and maintaining Buy ratings. Their optimism stems from recent investor meetings, new product evaluations, and positive feedback from wholesale accounts.

Skechers reported strong third quarter results in 2024, with record sales of $2.35 billion, marking a 16% increase from the previous year. The company's earnings per diluted share rose by 35%, primarily driven by a 21% surge in wholesale operations and a 9.6% increase in Direct-to-Consumer sales.

Despite regional challenges, particularly in China, Skechers saw substantial growth in international markets, which now account for 61% of total revenue. These recent developments highlight Skechers' strong financial performance and the confidence of various analyst firms in the company's future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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