UBS analyst Jay Sole said he believes Skechers (SKX) carried its strong U.S. momentum into Thanksgiving and likely through Cyber Monday. He also thinks the company continues to perform well in China and that Singles Day in China was strong. He believes that as Skechers continues to deliver strong organic sales growth and steady margin expansion, its stock will get a P/E multiple more in-line with the "only 4 other companies" he covers that he sees achieving double-digit EPS growth over the next 5-year period - namely Lululemon (LULU), Nike (NKE), Under Armour (UAA) and Burlington Stores (BURL). Sole keeps a Buy rating and $48 price target on Skechers shares.
News For SKX;LULU;NKE;UAA;BURL From the Last 2 Days
Pre-earnings options volume in Nike is 2.0x normal with puts leading calls 8:7. Implied volatility suggests the market is anticipating a move near 6.0%, or $5.70, after results are released. Median move over the past eight quarters is 6.2%.
Nike (NKE) is scheduled to report results of its first fiscal quarter after the market close on September 29, with a conference call scheduled for 5:00 pm ET. What to watch... To see the rest of the story go to thefly.com. See Story Here
JPMorgan analyst Matthew Boss says that based on recent incoming call volume, he sees "peak negativity" into Nike's fiscal Q1 print on Thursday with the shares down 42% year-to-date. The shares are trading at 20-times estimated 2024 earnings, seven turns below the pre-pandemic average, Boss tells investors in a research note. He sees an attractive risk/reward setup under $100 per share given Nike's earnings "stability" and valuation multiple support. Boss keeps an Overweight rating on the shares with a $130 price target.
Baird analyst Jonathan Komp Baird removed his negative "Fresh Pick" designations on Under Armour (UAA) as part of a shift to be less defensive in the apparel, footwear and fitness space. After shifting more cautiously in mid-August, he is starting to see an improving risk-reward backdrop following substantial stock declines in the group, Komp tells investors. In a broader note on the space, Komp also removed his negative "Fresh Pick" designations on Wolverine World Wide (WWW) and Rocky Brands (RCKY).