Shares of Skechers USA Inc
“We believe SKX is one quarter away from a potential sales inflection which historically has been a catalyst for the stock as investors prioritize sales momentum over EPS growth by according SKX its highest P/E multiple in the first year of any new cycle,” analyst Scott Krasik wrote in a note.
Krasik noted that since 2005,
Further, a recent insider trading transaction lends further credence to the bullish thesis. The analyst pointed out that Chairman and CEO, Robert Greenberg, who historically has been a good stock timer (i.e. seller) bought 500,000 shares for $11 million this week, his first buy in 15 years.
“While fundamentals will likely remain under pressure for the next one to two quarters, as we indicated in recent research, SKX ability to reduce inventory after 2Q16 diminishes the risk of another major negative EPS revision in the near-term,” Krasik added.
At last check, shares of Skechers climbed 15.76 percent to $26.37. Krasik raised his price target by $10 to $31.
|Nov 2016||B. Riley||Downgrades||Buy||Neutral|
|Nov 2016||Wedbush||Initiates Coverage On||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.