In a report released today, Christopher Nardone from Bank of America Securities reiterated a Buy rating on Skechers USA (SKX – Research Report), with a price target of $76.00.
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Christopher Nardone’s rating is based on Skechers’ potential for continued growth despite recent challenges. The company’s stock appears undervalued with a price-to-earnings ratio of 13-14x, even though recent EPS results were impacted by foreign exchange expenses and a higher tax rate. Analysts anticipate double-digit sales growth, which supports the Buy rating.
Furthermore, Skechers’ strategy includes managing tariffs through vendor negotiations and potential price adjustments, which mitigates some risk. Although China presents some macroeconomic challenges, growth in other regions such as the US and EMEA has been robust, contributing to the positive outlook for Skechers’ stock. With a price objective of $76 and a current price of $66, there is an expected 15% upside potential, reinforcing the Buy recommendation.
Nardone covers the Consumer Cyclical sector, focusing on stocks such as Boot Barn, American Eagle, and Deckers Outdoor. According to TipRanks, Nardone has an average return of 14.2% and a 58.82% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $83.00 price target.