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Research Alert: CFRA Maintains Hold Opinion On Shares Of Skechers U.s.a., Inc.

· 02/05/2021 06:23

11:20 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target by $5 to $36, 16.5x 2022 EPS estimate of $2.18, below co.'s 10-year historic average and a discount to footwear peers, warranted, we think, given SKX's lower growth profile. We lower 2021's to $1.87 from $2.27. SKX posts Q4 EPS $0.34 vs. $0.39, beating consensus. Sales declined 0.5% to $1.3B, beating consensus, with domestic wholesale +1.2%; international wholesale +2.5%; direct-to-consumer -6.4%. We keep Hold to reflect our tactical stance in Apparel & Retail favored toward Covid-19 winners that we think have more room to run, coupled with what we see as SKX's fair valuation. That said, we like the company's financial profile (boasting ample liquidity), brand portfolio, which is catered to accelerating consumer appetite for work-for-home and outdoor exercise (most resilient Covid-19 fashion categories), and favorable geographic positioning, with higher penetration in China (+30%; 16% of 2019 sales), which we think is positioned for a swifter retail recovery than U.S. (42% sales).