UPDATE: Brean Capital Initiates Coverage on Skechers USA with Buy Rating, $39 PT on Leading Growth Story

In a report published Wednesday, Brean Capital analyst Danielle McCoy initiated coverage on

with a Buy rating and $39.00 price target. In the report, Brean Capital noted, “We are initiating coverage of Skechers with a Buy rating and $39 price target - Skechers is a leading growth story driven by margin expansion with a diversified portfolio of compelling footwear which has resulted in expanding shelf space at new and existing key wholesale partners. This has driven the success demonstrated by Skechers over the past five consecutive quarters – a significant improvement since the Shape-ups mishap in 2011. In addition, material worldwide unit growth and distribution expansion is on the horizon, and when combined with its powerful multi-dimensional marketing approach, we believe Skechers is more than ever setting the stage for sustainable growth. While consistent better-than-expected earnings generation has somewhat raised the bar (or skewed consensus) for the company, we believe Skechers is ready to take on the challenge and prove the strength of its global recognizable brand, revamped operating model and enhanced product execution. We believe in a period where market valuations are rich, investors will pay up for companies who, when compared to its peer group, have more evident growth vehicles and top and bottom-line upside potential, such as Skechers; as a result, we are buyers of SKX.” Skechers USA closed on Tuesday at $29.50.