Shares of footwear maker Skechers (SKX) - Get Skechers U.S.A., Inc. Class A Report kicked higher Wednesday after the company received an upgrade and a higher price target on signs of increased sales momentum.
In a note to clients, Susquehanna Research analyst Sam Poser upgraded the company to positive from neutral and raised his target price on the stock to $37 from $32, noting that his check-ins at various retail locations and also recent results from wholesalers point to stronger demand for the company's products.
"Proprietary checks and recent results from wholesale partners indicate Skechers' business is gaining momentum," Poser said, adding that "men's and women's fashion athletic styles and men's non-athletic styles sell-through rates are accelerating," even as the suggested retail price of targeted styles are being raised.
"Skechers' aggression to expand its business remains, but management appears more willing to forego some sales for increased profitability," Poser said.
Skechers' stock was up more than 3% in mid-afternoon trading Wednesday, rising $1.08 to $32.58 on the New York Stock Exchange. Over the past 12 months, the shares have traded as low as $21.45 and as high as $43.08.
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