Intel stock extends gains after report of possible U.S. government stake
Investing.com - Citi upgraded Steven Madden (NASDAQ:SHOO) from Neutral to Buy on Thursday, raising its price target to $32.00 from $26.00. According to InvestingPro analysis, the stock appears undervalued at its current price of $24.58, trading at just 10.5 times earnings despite maintaining strong financial health metrics.
The upgrade comes as Citi expects the footwear company’s second-quarter earnings, scheduled for July 23, to mark the low point for margins amid significant tariff pressure this year. The firm anticipates margin recovery in fiscal 2026 as Steven Madden laps high China tariff rates, which reached 145% in some cases during the second quarter of 2025. The company currently maintains a healthy gross profit margin of 41.1% and operates with a moderate level of debt, as highlighted in InvestingPro’s comprehensive analysis.
Citi projects that Steven Madden will achieve gross margins exceeding 40% in fiscal 2026, representing a 100 basis point year-over-year improvement. The firm forecasts fiscal 2026 earnings per share of at least $2.15, significantly above the consensus estimate of $1.84.
The research firm believes the market is underappreciating the benefits of the KG acquisition, which Citi expects will contribute to a 12% revenue increase in fiscal 2026, compared to the consensus estimate of 7% growth. Additionally, Citi notes that a favorable fashion shift toward dress shoes and away from sneakers should benefit Steven Madden’s core business. The company has already demonstrated strong revenue growth of 10.3% over the last twelve months, with InvestingPro data showing seven additional key insights about the company’s growth potential and financial stability.
With shares trading at approximately 11.5 times fiscal 2026 earnings estimates, well below the company’s five-year average multiple of about 15 times, Citi sees a favorable risk/reward profile for the stock. The company maintains strong liquidity with a current ratio of 2.25, suggesting robust financial health despite recent market pressures.
In other recent news, Steven Madden has been the focus of multiple analyst updates and strategic developments. BTIG reiterated its Buy rating, maintaining a $38.00 price target, after meetings with company executives revealed effective management of tariff challenges and positive fashion trends. Williams Trading upgraded Steven Madden from Hold to Buy, setting a new price target of $31.00, influenced by positive trends in women’s dress shoes and western boots observed at a recent shoe show. Piper Sandler maintained a Neutral rating with a $25.00 price target, noting the company’s strategic shift in manufacturing to countries outside China, which could mitigate supply chain disruptions.
UBS also reaffirmed a Neutral rating, citing concerns over growth in the women’s fashion footwear category and potential impacts of price increases on sales volumes. Meanwhile, Citi upheld its Neutral rating with a $26.00 price target, mentioning the positive shift in fashion trends favoring dress shoes and the brand buzz from a viral TikTok moment. Despite these positive developments, analysts highlighted ongoing uncertainties related to tariffs and their potential impact on the company’s financials. Management expressed optimism about recovering margins in the future, particularly by 2026. These updates reflect a mix of cautious optimism and strategic adjustments as Steven Madden navigates current market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.