UBS raises Wolverine stock target to $22, maintains Buy rating

Friday - UBS has increased its price target for Wolverine World Wide (NYSE:WWW) shares to $22 from the previous target of $18, while keeping a Buy recommendation on the stock. The company, which has recently shown strong momentum with a 15.91% return over the past week, received positive insights from analyst Mauricio Serna, who cited Wolverine’s continued investment in its Active brands as a catalyst for sustained sales and earnings per share (EPS) growth. According to InvestingPro data, the company maintains a solid gross profit margin of 44.85% on revenues of $1.77 billion.

Wolverine’s first-quarter EPS outperformance, coupled with an impressive year-over-year sales growth of 30% for its Saucony brand, supports the analyst’s confidence in the company’s effective turnaround strategy. The company has demonstrated financial resilience, maintaining dividend payments for 38 consecutive years - one of several key insights available on InvestingPro. Despite the ongoing challenges posed by tariffs, UBS projects that Wolverine’s strategic initiatives aimed at mitigating these effects and its emphasis on selling products at full price will enhance profitability over time.

Serna’s analysis forecasts an 18% compound annual growth rate (CAGR) in EPS over a five-year period, suggesting that the market currently undervalues Wolverine’s growth potential, especially considering its forward price-to-earnings (P/E) ratio of 12 times for the second fiscal year. The expectation is that continued sales and EPS outperformance in the near term (NTM) will propel Wolverine’s stock toward the newly set $22 price target.

Wolverine World Wide’s recent financial performance and strategic moves appear to align with UBS’s positive outlook for the company. As Wolverine navigates market headwinds, its focus on brand investment and operational efficiency remains key to achieving the growth anticipated by UBS analysts.

In other recent news, Wolverine Worldwide reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.18, which was below the forecasted $0.25. The company also reported revenue of $412 million, which fell short of the anticipated $425.94 million. Despite these misses, Wolverine’s Saucony and Merrell brands showed strong revenue growth, with Saucony’s revenue increasing by 31.3% and Merrell’s by 14.4% on a foreign exchange-neutral basis. The company’s total revenue grew by 5.5%, or 6.7% on a constant currency basis. Wolverine Worldwide has withdrawn its full-year 2025 guidance due to uncertainties surrounding tariffs but provided second-quarter projections that align with consensus revenue estimates. Williams Trading analyst Sam Poser increased the stock’s price target to $19, maintaining a Buy rating, citing Wolverine’s strong brand management and evolving business strategy. Poser also noted that Wolverine is reducing its reliance on Chinese manufacturing, with plans to produce less than 10% of its U.S. products in China this year, aiming for below 5% by 2026. These developments reflect Wolverine’s strategic efforts to navigate tariff challenges while focusing on brand growth and diversification.

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