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On Thursday, UBS reiterated its Buy rating and $90.00 price target for Skechers USA (NYSE:SKX), underscoring the brand’s position as one of the world’s largest footwear brands and its potential for growth. Currently trading at $56.22, the stock sits near its 52-week low of $53.79, while InvestingPro analysis suggests the stock is undervalued. Analysts at UBS expressed their belief that the demand for Skechers’ products continues to be strong and that the company’s financial performance is likely to surpass market expectations.
The firm’s positive outlook is based on the anticipation of significant growth in Skechers’ sales, EBIT margin, and earnings, which they predict will contribute to a higher stock price. This optimism appears well-founded, as the company has demonstrated strong revenue growth of 12.11% over the last twelve months, with a healthy gross profit margin of 53.15%. UBS forecasts that Skechers will achieve approximately a 13% compound annual growth rate (CAGR) in earnings per share (EPS) over a five-year period from fiscal year 2024 to fiscal year 2029.
This confidence in Skechers’ growth trajectory was reinforced during meetings with the company’s management at the UBS Global Consumer and Retail Conference held on March 12, 2025. The interactions at the conference strengthened UBS’s conviction in their assessment of Skechers’ prospects. InvestingPro data reveals the company operates with moderate debt levels and maintains strong liquidity, with a current ratio of 1.97.
UBS’s endorsement of Skechers comes at a time when the company continues to expand its global presence and innovate within the footwear industry. The firm’s maintained Buy rating and price target reflect an expectation that Skechers will continue to perform well in the coming years.
Investors and market watchers often look to the guidance of firms like UBS to gauge the potential of stocks like Skechers. The maintained Buy rating and price target suggest that Skechers remains an attractive investment opportunity, according to UBS’s analysis.
In other recent news, Skechers USA reported its fourth-quarter 2024 earnings, which revealed a miss on both earnings per share (EPS) and revenue expectations. The company posted an EPS of $0.65, falling short of the anticipated $0.74, while revenue came in slightly below forecasts at $2.21 billion against a forecast of $2.22 billion. Despite these misses, Skechers achieved a 13% increase in full-year sales, reaching $9.04 billion, and plans to open 180-200 new stores in 2025. Analysts have had mixed reactions to these developments. Stifel maintained a Buy rating with a price target of $80, expressing confidence in Skechers’ growth potential, especially in international markets. Meanwhile, Barclays (LON:BARC) adjusted its price target down to $77 from $80, citing anticipated financial performance adjustments, including decreased sales forecasts and increased costs. UBS also maintained a Buy rating but slightly reduced its price target to $90, highlighting Skechers’ global reach and product appeal despite foreign exchange challenges. These recent developments have kept investors and analysts closely monitoring Skechers’ strategic initiatives and market performance.
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