Wunderlich Securities Raises EPS Estimates on Skechers USA

In a report published Thursday, Wunderlich Securities analyst Danielle McCoy reiterated a Buy rating and $70.00 price target on Skechers USA SKX. In the report, Wunderlich Securities noted, “We are reiterating our Buy rating and $70 price target, and raising our FY14, FY15 and FY16 EPS estimates to $2.68 (from $2.58), $3.48 (from $3.37), and $4.26 (from $4.11), respectively, after Skechers (SKX) reported better-than-expected 3Q top- and bottom-line results driven by strong global demand across all categories. We continue to believe the company is winning in all areas as it continues to update its diversified and well-balanced product assortment, expand distribution in new and existing channels, and deepen international penetration. More importantly, the company is capitalizing on the mega casual comfort footwear trend which is the foundation of its collections. Given +50% backlogs, we remain confident Skechers is still in a stage of growth. We recommend shares of SKX.” Skechers USA closed on Wednesday at $54.93.