UPDATE: Morgan Stanley Initiates Coverage On Steven Madden

Jay Sole of Morgan Stanley initiated coverage of

with an Equal-Weight rating and $35 price target. "The women's fashion footwear cycle is troughing and we don't anticipate an inflection until second quarter 2015 at the earliest," Sole wrote. The analyst adds that while the company is "the industry's best" women's fashion footwear manufacturer, the company will not benefit from multiple expansion or earnings improvements until a new fashion trend emerges. The company has benefited from retaining its young customer base, an accomplishment its peers has failed on. Additionally, the company maintains operational advantages over its peers, including turning inventory faster than its competitors. However, these are not reason to buy shares. According to Sole, the market is already pricing in an "eventual rebound" in shares as the company's sales are cyclical. The analyst notes that investors should track mall trends closely and wait until a shift in fashion presents itself. Steven Madden shoes have historically demonstrated an ability to evolve with fashion trends. When a shift in fashion is underway, Sole may reconsider his views on the stock.