UBS cuts Steven Madden stock target to $22, maintains Neutral

Published 23/04/2025, 15:02
UBS cuts Steven Madden stock target to $22, maintains Neutral

On Wednesday, UBS analyst Jay Sole adjusted the price target for Steven Madden (NASDAQ: NASDAQ:SHOO) stock, lowering it to $22 from the previous target of $24, while continuing to hold a Neutral rating on the company’s shares. The revision was prompted by concerns over consumer spending in the fashion footwear sector and the potential impact of recent tariff announcements by the United States. According to InvestingPro data, the stock has declined over 54% in the past six months, though analysis suggests the company remains undervalued at current levels.

Sole’s report highlighted that channel checks indicate a subdued consumer spending environment for fashion footwear, which could lead Steven Madden to reconsider its full-year 2025 (FY25) earnings per share (EPS) guidance. The current EPS forecast by Steven Madden is in the range of $2.30 to $2.40, but the analyst suggests that the company might reduce this guidance by approximately $1.00 due to the new tariffs. Despite these challenges, InvestingPro data shows the company maintains strong fundamentals with a healthy current ratio of 2.16 and more cash than debt on its balance sheet.

Despite the uncertainties, the report notes that investors seem to be anticipating such an outcome, resulting in a balanced view of the risks and potential rewards associated with the company’s stock. Additionally, Sole pointed out that the options market is predicting a significant price movement of +/- 7.0% around the event, which is notably higher than the historical average move of 3.9%. UBS concurs with the options market’s expectations of heightened volatility for Steven Madden’s stock. The company has demonstrated resilience with a consistent dividend payment history spanning 8 consecutive years and maintains a solid gross profit margin of 41%.

The analyst’s report also includes detailed scenario analyses concerning the impact of tariffs on Steven Madden’s financial outlook. While the exact adjustments to the company’s guidance are not yet known, the analysis presents different potential outcomes, suggesting that changes could be more or less significant than the estimated $1.00 reduction.

Investors and market watchers are now eyeing Steven Madden’s next move, as any updates to its FY25 EPS guidance could influence the company’s stock performance in the near term.

In other recent news, Steven Madden has been the focus of analyst revisions and market evaluations. Williams Trading downgraded Steven Madden from Hold to Sell, citing concerns over tariffs impacting margins and demand, and reduced its price target from $35.00 to $16.00. Telsey Advisory Group also adjusted its price target for Steven Madden, lowering it to $38.00 from $44.00, while maintaining a Market Perform rating. Telsey noted mixed performance in fiscal year 2024, highlighting increased promotions and reliance on private label products affecting gross margins, despite stronger sales. Jefferies followed suit by cutting Steven Madden’s price target to $36.00 from $46.00, maintaining a Hold rating. The analyst noted that while the company reported better-than-expected sales growth, its gross margin remains under pressure. The acquisition of Kurt Geiger is expected to positively impact earnings, but concerns over tariff exposure persist. Meanwhile, Shoe Carnival (NASDAQ:SCVL) was downgraded by Williams Trading from Buy to Hold, with a price target reduction to $17.00 from $30.00, amid broader industry challenges. Piper Sandler’s survey indicated shifts in teen fashion preferences, with UGG rising in popularity and Nike (NYSE:NKE) experiencing a decline in mindshare, especially among upper-income females.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.