Stifel reaffirms Buy rating on Wolverine World Wide stock ahead of Q2 results

Investing.com - Stifel has maintained its Buy rating and $25.00 price target on Wolverine World Wide (NYSE:WWW) stock, citing expectations for second-quarter results to exceed analyst consensus. The stock, currently trading at $23.59 and near its 52-week high of $24.64, has shown remarkable strength with a 67.46% return over the past year. According to InvestingPro analysis, the stock’s RSI suggests it may be in overbought territory.

The investment firm anticipates Wolverine will report second-quarter revenue of $450 million, representing 6% year-over-year growth, and adjusted earnings per share of $0.24. These projections are supported by favorable year-over-year comparisons against the 8.8% revenue decline seen in the second quarter of 2024. The company, with its current market capitalization of $1.92 billion and trailing twelve-month revenue of $1.77 billion, has maintained strong fundamentals despite market volatility.

Stifel highlighted momentum in the company’s Saucony brand, which accounts for approximately 23% of sales, as a key factor in its positive outlook. The firm also noted ongoing profitability improvements before tariffs begin affecting the income statement in the third quarter of 2025.

For the third quarter of 2025, Stifel expects Wolverine to issue revenue guidance of $450-460 million and adjusted earnings per share guidance of approximately $0.25. The firm does not anticipate Wolverine will reinstate full-year 2025 guidance.

Stifel’s $25 price target represents 20 times projected calendar year 2026 adjusted earnings per share of $1.25, with the firm citing strengthening visibility for growth drivers in high-margin brands Merrell and Saucony, along with expectations for net leverage to fall below 3x by year-end. Notably, Wolverine has maintained dividend payments for 38 consecutive years, demonstrating consistent shareholder returns. For deeper insights and additional analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.

In other recent news, Wolverine World Wide has been the subject of several analyst upgrades and price target adjustments. UBS has raised its price target for Wolverine to $30, maintaining a Buy rating, and expects the company to surpass consensus earnings estimates for the second quarter. Similarly, Williams Trading increased its price target to $25, citing strong momentum in the company’s Active Group, particularly from the Saucony and Merrell brands. Meanwhile, Argus upgraded Wolverine’s stock rating to Buy with a $20 target, acknowledging the company’s efforts in improving business performance and successful brand strategies.

Additionally, Wolverine World Wide announced the appointment of Cheryl Abel-Hodges and Jack Boyle to its Board of Directors. Abel-Hodges brings experience from her role as CEO of Tommy John, Inc., and previously as CEO of Calvin Klein. Williams Trading also lifted its price target to $21 following a U.S.-China agreement that temporarily reduces tariffs on Chinese imports, which has positively impacted Wolverine’s earnings outlook. The company’s first-quarter earnings and revenue exceeded expectations, with significant sales growth in the Saucony and Merrell brands.

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