Sterne Agee Raises Skechers Price Target As Business Accelerates

In a research note issued yesterday, Sterne Agee analyst Sam Poser maintained coverage with a Buy rating on shares of Skechers USA (SKX) and raised his price target to $60 (from $50). The report follows SKX’s second quarter results, which were encouraging.

Poser noted, “Skechers’ 37% revenue increase is a shining light in a generally gloomy retail environment. Good looking product with a great value proposition across all categories and geographies will continue to drive revenue growth for the foreseeable future. Discretionary spending and inventory levels remain and are likely to remain under control. Raising FY14/FY15 EPS estimates from $2.20/ $3.06 to $2.54/$3.32 and introducing FY16 EPS estimate of $3.89”.

The analyst concluded, “Our price target of $60 implies a multiple of 18.1x (ex-net cash 16.9x) our FY15 EPS estimate. We view our multiple as warranted given the strong revenue growth, operating margin, and EPS. Furthermore, we are confident that the consistent performance demonstrated by the company in recent quarters will continue, leading to further multiple expansion”.

According to, which measures analysts and bloggers success rate based on how their calls perform, analyst Sam Poser currently has a one-year average return of 19.4% and an 77% success rate. Poser has a 30.8% average return when recommending SKX, and is ranked #33 out of 3213 analysts.

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