UPDATE: Morgan Stanley Initiates Coverage On Skechers

Jay Sole of Morgan Stanley initiated coverage of

with an Overweight rating and $73 price target. "[Skechers] has a broader product assortment, more diversified customer base, wider geographic distribution, and more efficient supply chain," Sole wrote. The analyst cautions investors not to assume a "bust" will following the current "boom," as has been the trend in the past. According to Sole, Skechers is a "much different and strong" company today than it has been in the past, especially as industry trends are working in the company's favor. The analyst refers to the ongoing trend of athletic shoes sales outperforming non-athletic shoe sales. Skechers recent success, according to Sole, is due to operational and strategic improvements. Naturally, growth may slow at some point in time from peak rates, but the analyst notes that sales improvements will remain healthy. In addition to operational and strategic improvements, management has successfully made the Skechers brand recognized globally with a market strategy focused on selling a brand, not a product. "Skechers is no longer just a knock-off company, it now delivers innovation," according to Sole.