Skechers USA ( NYSE: SKX ) stock gained sharply on Monday after Cowen upgraded the stock to a Buy-equivalent rating.
“Skechers' value proposition continues to resonate based on our checks and is gaining preference in our survey for casual/lifestyle footwear from [Nike] ( NKE ) and [Adidas] ( OTCQX:ADDYY ),” the firm’s analysts wrote.
The upgrade note added that EPS and sales estimates for 2023 are likely to be cleared by the company. Easing supply chain issues and falling freight costs are also likely to lift margins above analyst expectations, the note explained.
Cowen raised its price target to $65 from $48 alongside the upgrade to Outperform from Market Perform. Shares of the California-based footwear manufacturer rose 2.72% in premarket trading on Monday.
Read more on Morgan Stanley’s contrasting view on margins for 2023 .
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Skechers stock boosted by Cowen's shift to Buy rating