Skechers USA ( NYSE: SKX ) stock gained sharply on Friday as Argus moved to a bullish opinion on the footwear manufacturer.
Argus’ analysts noted that the company appears poised to benefit from “rapid growth in emerging markets, especially China and India” and can capitalize on continued store openings in coming years. In the near term, resilient consumer spending should sustain momentum for a stock that posted an over 30% gain in the calendar fourth quarter of 2022.
“Skechers is benefiting from solid consumer spending, which continued in November and December, driven by higher wages and favorable direct-to-consumer trends,” the firm’s analysts explained. “Given prospects for sustained revenue growth and margin improvement, we believe that the shares are undervalued at 14.4-times our 2023 earnings estimate.”
The team assigned a $50 price target to the stock alongside the newly-bullish rating. Shares rose 2.38% shortly before the opening bell on Friday.
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Skechers stock runs higher as Argus upgrades to Buy