Argus lifts Wolverine stock rating to Buy, sets $20 target

On Friday, Wolverine World Wide (NYSE:WWW), a global footwear company currently trading at $16.43 with a market capitalization of $1.33 billion, saw its stock rating upgraded by Argus analysts from Hold to Buy, with a new price target set at $20.00. The upgrade reflects the company’s ongoing efforts to improve its business performance and the success of its popular Saucony and Merrell brands. According to InvestingPro analysis, the stock is currently trading slightly above its Fair Value, with analysts’ targets ranging from $17 to $25.

According to Argus, Wolverine has been making significant strides in its turnaround strategy, which has been marked by robust sales from its key brands. The analysts noted that the company’s current market valuation does not fully account for its successful moves towards selling its products at full prices and its broader turnaround plans. The company has maintained dividend payments for 38 consecutive years, demonstrating long-term financial stability.

The new price target suggests a positive outlook for Wolverine’s stock, indicating a potential upside from its previous valuation. Argus maintains a long-term Buy rating on the stock, signaling confidence in Wolverine’s future prospects.

However, the analysts also issued a word of caution for potential investors, highlighting that Wolverine’s shares might experience volatility. They advised that the stock is best suited for investors who have a higher tolerance for risk.

Wolverine World Wide’s commitment to its turnaround strategy and the strength of its Saucony and Merrell brands have evidently impressed analysts at Argus, leading to the upgraded rating and optimistic price target. This move could attract the attention of investors looking for growth opportunities in the footwear industry.

In other recent news, Wolverine World Wide’s first-quarter earnings for 2025 revealed an EPS of $0.18, which was below the forecasted $0.25, and revenue of $412 million, slightly under the anticipated $425.94 million. Despite the earnings miss, the company saw strong growth in its Saucony and Merrell brands, with Saucony achieving a 30% revenue increase and Merrell a 13% increase. Analysts from Williams Trading and UBS have shown optimism, with Williams Trading increasing its price target to $21 and UBS raising it to $22, both maintaining a Buy rating. These adjustments come as a result of Wolverine’s continued investment in its Active brands and strategic initiatives to mitigate tariff impacts.

The company recently withdrew its full-year 2025 guidance due to uncertainties surrounding potential tariffs, which could impact profits by $30 million. Wolverine has been diversifying its manufacturing locations to reduce dependency on China, with plans to produce less than 10% of its U.S. products there this year. Analysts also noted that Wolverine’s decision to withdraw its full-year guidance was a cautious move in light of these uncertainties.

Wolverine’s strategic moves, including price adjustments and operational efficiencies, are aimed at enhancing profitability over time. The company projects second-quarter revenue between $440 million and $450 million, with growth expected in the active group segment. As Wolverine navigates market headwinds, its focus on brand investment and operational efficiency remains key to achieving the growth anticipated by analysts.

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