UPDATE: Piper Jaffray Initiates Coverage on Steven Madden Ltd. with Overweight Rating, $55 PT on High Sales Growth Confidence

In a report published Friday, Piper Jaffray analyst Erinn E. Murphy initiated coverage on Steven Madden Ltd. SHOO with an Overweight rating and $55.00 price target. In the report, Piper Jaffray noted, “We are initiating coverage with an Overweight rating and a $55 price target. We have a high degree of confidence that SHOO can deliver sales growth in the high-single digits and earnings growth in the low-double digit to mid-teens range on an annual basis given top-of-mind (and growing) brand awareness of its namesake brand within the footwear as well as the accessories categories. Sales growth will be augmented by margin accretive sales mix initiatives including accessories category growth (20% of mix), new outlet stores, direct-sourcing, and international expansion. Operational execution remains compelling, with the company's nimble test & react model, strong sourcing infrastructure and ability to acquire, license and integrate brands. We think a mid-teens multiple is justified by above average growth, strong profitability, and cash flow generation ($6.20/share in cash).” Steven Madden Ltd. closed on Thursday at $47.67.