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On Monday, UBS analyst Jay Sole adjusted the price target for Wolverine World Wide (NYSE:WWW) stock, bringing it down to $29 from the previous $30, while still holding a Buy rating on the company. Currently trading at $20.60, the stock appears overvalued according to InvestingPro Fair Value metrics, despite showing remarkable strength with a 144.65% return over the past year. The revision reflects a modest change in valuation expectations, even as the analyst expressed a positive outlook on the company’s performance.
With just 9 days until Wolverine’s earnings report, Sole highlighted that the company’s fundamentals appeared to have improved during the fourth quarter of 2024, projecting an earnings per share (EPS) beat of 4 cents. Looking ahead, he anticipated that Wolverine will provide a full-year 2025 EPS outlook in the range of $1.20 to $1.40. This projection is expected to align closely with the Street’s current estimate of $1.37. For deeper insights into Wolverine’s financial health (currently rated as FAIR by InvestingPro), subscribers can access the comprehensive Pro Research Report, part of the analysis available for 1,400+ US stocks.
The market seems to share similar expectations regarding Wolverine’s upcoming financial guidance. Sole noted that there is an upside risk if Wolverine’s sales momentum exceeds expectations, potentially leading to a guidance for the FY25 EPS above the anticipated range. Conversely, there are downside risks, including macroeconomic headwinds like foreign exchange fluctuations and tariffs, which could lead to weaker FY25 guidance than anticipated.
Furthermore, the options market has priced in a potential +/-12.2% movement in Wolverine’s stock price following the earnings report, compared to the historical average move of 7.4%. Despite this, Sole expects the actual volatility to be less than the +/-12.2% currently anticipated by the options market. Wolverine World Wide’s stock price and financial performance will continue to be observed by investors as the company approaches its earnings report.
In other recent news, Wolverine World Wide Inc . has seen significant developments. The company’s Q3 revenue exceeded market expectations, hitting $440 million and surpassing the forecasted $420 million. Despite a 7% decline in revenue compared to the same period last year, the company raised its financial outlook for the year, indicating confidence in its strategic initiatives and operational efficiencies.
Additionally, Wolverine World Wide announced the departure of Jodi Bricker from the company’s Board of Directors. Bricker’s decision to not seek re-election is unrelated to any disagreement with the company’s operations, policies, or practices. The company also voluntarily reduced its revolving credit facility from $1 billion to $800 million, a strategic financial decision following a period of restructuring.
Stifel, a financial services firm, upgraded Wolverine World Wide’s stock from Hold to Buy. The firm expects 2025 to be a pivotal year for the company, driven by strong spring orders, ongoing momentum of the Saucony brand, and expansion of distribution channels. These recent developments reflect Wolverine World Wide’s strategic progress and commitment to maintaining a robust and flexible financial foundation.
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