Skechers on track for $10B in revenue by 2026, says UBS

Skechers (SKX) is on track to deliver $10B in revenue by 2026, which would allow it to remain the world’s third largest footwear company, UBS tells investors in a research note. The firm’s analysis suggests the market is significantly underappreciating the strength of the Skechers brand name and the company’s revenue growth potential, and says survey results in the firm’s 10th annual global athletic wear survey were among the best of all brands. UBS, which has a Buy rating and $92 price target on the shares, sees Skechers delivering a 16% five-year EPS compound annual growth rate, leading to multiple positive earnings surprises over the near-term and possible P/E expansion.