Market Overview

UPDATE: Morgan Stanley Initiates Coverage On Brown Shoe Company

Share:

Jay Sole of Morgan Stanley initiated coverage of Brown Shoe Company (NYSE: BWS) with an Underweight rating and $24.50 price target.

"Brown Shoe Company's wholesale division is weighed down with deteriorating assets and we think sales will fall short of expectations," Sole wrote. The analyst adds that the company's "narrow" margins hinder management's ability to manage an ongoing shift in the footwear retail environment towards athletic footwear.

Sole estimates that only 30 percent of the company's mix comprises of athletic footwear. The company's non-athletic footwear isn't impressing the analyst who notes that companies like Foot Locker and Finish Line offer a more exclusive product offering.

Brown Shoe Company may find it hard to find success within the online channel. The analyst believes that selling lower priced footwear found in the off-price channel is "hard" given an increase in footwear manufacturers selling directly to the consumers. In addition, the analyst thinks that the company's technology usage is "behind that of online leaders" and the company lacks the financial flexibility to reinvest in its business without "seriously damaging" earnings per share growth.

Latest Ratings for BWS

DateFirmActionFromTo
Dec 2014UpgradesUnderweightEqual-Weight
Nov 2014UpgradesNeutralBuy
Oct 2014Initiates Coverage onUnderweight

View More Analyst Ratings for BWS
View the Latest Analyst Ratings

Posted-In: Brown Shoe Company finish line foot locker Jay SoleAnalyst Color Price Target Initiation Analyst Ratings

 

Related Articles (BWS)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
IINDoughertyAssumes34.0
PNRJefferiesInitiates Coverage On
YYUBSUpgrades
ROKUOppenheimerMaintains155.0
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Weight Watchers Sinks Amid 12% Subscriber Decline

Albert Fried Sees More Downside For Pandora Media