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BTIG analyst firm reiterated its Buy rating and $38.00 price target on Steven Madden (NASDAQ:SHOO) following meetings with company executives last week. The stock, currently trading at $23.02, appears undervalued according to InvestingPro analysis, with analyst targets ranging from $23 to $38. The firm noted an "incrementally positive" tone compared to early May when the company reported earnings.
The meetings with CEO Ed Rosenfeld and VP Corporate Development and Investor Relations Danielle McCoy revealed that while the tariff environment remains volatile, management has effectively executed plans to mitigate downside risk. BTIG indicated that tariff offsets, including price increases, are proceeding according to plan.
Fashion trends are beginning to move in the brand’s favor, with the company seeing traction in dress shoes and boots. Despite some relief on China tariffs, 2025 is still expected to be challenging, with tariffs driving both revenue and margin headwinds.
BTIG maintained its full-year estimates but made slight adjustments to revenue and margin composition, noting peak revenue headwinds are expected in the second quarter and gross margin pressure in the third quarter. The firm projects a meaningful recovery in 2026, though not a complete return to previous levels.
The research firm believes Steven Madden needs to navigate through the current difficult period but remains positioned to capture market share as industry headwinds diminish, citing the company’s "relative agility and ability to continue to invest" as competitive advantages. With an overall Financial Health score rated as "GOOD" by InvestingPro, which offers comprehensive analysis and additional insights through its Pro Research Report covering 1,400+ US stocks, the company appears well-positioned for future growth despite near-term challenges.
In other recent news, Steven Madden has experienced several noteworthy developments. Williams Trading upgraded Steven Madden stock from Hold to Buy, setting a new price target of $31.00. This decision follows positive trends observed at the FFANY shoe show, particularly in women’s dress shoes and western boots. Meanwhile, Piper Sandler and UBS both maintained a Neutral rating on the stock, with price targets of $25.00 and $23.00, respectively. Piper Sandler noted the company’s efforts to diversify its manufacturing base outside of China, while UBS highlighted concerns about growth rates and potential impacts from price increases.
Citi also maintained a Neutral rating with a $26.00 price target, citing positive shifts in fashion trends and increased brand visibility from viral social media moments. Additionally, Williams Trading previously raised Steven Madden’s stock rating from Sell to Hold, influenced by the suspension of additional tariffs on Chinese goods. This change is expected to reduce financial strain and positively impact operational costs and margins. Overall, these developments reflect a mix of cautious optimism and ongoing challenges for Steven Madden in the current market environment.
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