Does Steven Madden Deserve A Premium Valuation?

In a report published Tuesday, Wunderlich Securities analyst Danielle McCoy maintained a Buy rating on

, while raising the price target from $39 to $44, following the company's in-line 4Q results and reiteration of its focus on "driving long-term profitability despite near-term headwinds." In the report, Wunderlich Securities noted, "In 2015, we believe SHOO will continue to build upon growth initiatives and when combined with the emergence of trends, there could be room for upside." "From emerging Spring trends, a better balanced assortment, enhanced e-commerce platform, and unit growth to the integration and development of newly acquired businesses and deepening international penetration, there are multiple growth drivers on tap for 2015 and beyond. In addition, we continue to believe the Steven Madden brand remains a leader in the contemporary space, and with the addition of strong, non-competing brands to the portfolio, the company is positioning itself to take more share," McCoy elaborated. The analsyst added that the company's 2015 outlook was at the high end of the Street's expectations and that management has assumed a buyback of about $100 million worth of shares in 2015. "We argue SHOO deserves a premium valuation to peers due to its solid operating platform, strong branded portfolio, healthy balance sheet, and management's consistent focus on the future," McCoy commented.