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Wednesday, Piper Sandler reaffirmed its Overweight rating on Wolverine World Wide (NYSE:WWW) with a steady price target of $27.00, well above the current price of $19.43. Despite a recent 7.6% weekly decline, the stock has shown remarkable strength with a 131% gain over the past year. The firm anticipates the company to surpass expectations in its fourth-quarter 2024 results, which are set to be announced on February 19 before the market opens. Analysts at Piper Sandler have noted that Wolverine has consistently outperformed market estimates, with sales and earnings per share (EPS) exceeding consensus by 4% and approximately 200%, respectively, over the past four quarters.
Wolverine’s brands, Merrell and Saucony, have shown strong performance, with Merrell already posting positive results ahead of expectations last quarter and Saucony becoming one of the top five sneaker sellers on StockX in 2024. The company has maintained dividend payments for 38 consecutive years, currently yielding 1.95%. Despite these successes, Piper Sandler predicts a cautious outlook for 2025. InvestingPro analysis reveals 10+ additional insights about Wolverine’s financial health and growth prospects. The conservative guidance is attributed to several factors, including CFO Taryn Miller’s first annual guide, foreign exchange headwinds impacting sales by an estimated 2% in both the first quarter of 2025 and throughout the year, and the expected gradual phase-in of Saucony’s expansion, which includes 900 new partner doors this spring.
In light of these factors, Piper Sandler has adjusted its EPS estimates for 2025 and 2026 to $1.25 and $1.50, respectively. While Wolverine’s valuation metrics show the stock trading at elevated multiples, with a Price/Book ratio of 5.42x, InvestingPro’s Fair Value analysis suggests the stock is currently overvalued. For comprehensive valuation insights and detailed financial analysis, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
The financial community will be watching closely as Wolverine World Wide releases its fourth-quarter 2024 results next week, with expectations set for another round of strong performance indicators from the company’s leading brands.
In other recent news, Wolverine World Wide has seen a number of significant developments. The global footwear and apparel leader appointed Brett Parent as their first Chief Strategy Officer. Parent, a veteran of the company, will lead corporate strategies and growth opportunities across Wolverine’s extensive brand portfolio. In addition, UBS analyst Jay Sole revised the price target for Wolverine stock to $29, while maintaining a Buy rating, anticipating an earnings per share beat of 4 cents for the fourth quarter of 2024.
In a strategic financial move, Wolverine voluntarily reduced its revolving credit facility from $1 billion to $800 million, a decision aimed at lowering costs associated with unused credit lines. Meanwhile, Stifel, a financial services firm, upgraded Wolverine’s stock from Hold to Buy, adjusting the price target upward to $29.00. Stifel analysts anticipate high-single-digit growth rates for Wolverine in 2025, which they expect will reduce the company’s net leverage to 2.3 times by year-end.
In a change to the company’s board, Jodi Bricker announced she will not seek re-election to Wolverine’s Board of Directors. Bricker’s departure is not related to any disagreement with the company’s operations, policies, or practices. These are the recent developments for Wolverine World Wide.
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