SHOO - Steve Madden raised to Buy as Citi eyes post-earnings upside

2023-04-13 08:19:09 ET

Steve Madden ( NASDAQ: SHOO ) stock rose sharply on Thursday as Citi moved from Neutral to Buy.

The bank’s analysts told clients that shares could see a positive catalyst in its April 26 Q1 earnings results. The analysts highlighted a leaner inventory level and strong demand for fashion footwear as key dynamics for the stock moving into 2023.

“We anticipate a modest 1Q beat, but importantly we expect mgmt to talk more optimistically about wholesale trends, suggesting upside in 2Q/F23,” the team wrote. “Given their unique speed-to-market model, SHOO is one of the only wholesalers able to participate in demand upside this spring.”

The team also sees the possibility that guidance is raised for the full-year, benefiting from a low bar set by analysts. Shares of Steve Madden ( SHOO ) rose 3.78% on thin volume in premarket trading on Thursday.

Read more on the earnings expectations for Steve Madden .

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