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Auriga Reiterates a 'Buy' on Steven Madden (SHOO); Raising Estimates to Reflect Canadian Licensee Acquisition

January 23, 2012 11:25 AM EST
SHOO Hot Sheet
Rating Summary:
    4 Buy, 2 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Auriga reiterates a 'Buy' on Steven Madden (NASDAQ: SHOO) price target of $45.00.

Auriga analyst says, "We are increasing our 2012 EPS estimate to $2.71 from $2.66 following SHOO's announcement that the company acquired its Canadian licensee. We expect SHOO to increase the current revenue run rate of $32mm by further penetrating department and specialty stores. In addition, we also expect SHOO could open additional full price retail and outlet stores in Canada (there are currently seven stores in operation). Separately, we expect SHOO to report a solid Q4 in mid-to-late February given what we believe was a strong fall/holiday season. We believe the company may have benefitted from the warm winter as consumers did not purchase outdoor/cold weather boots, instead spending the incremental discretionary dollars on fashion boots. Our Q4 EPS estimate of $0.54 remains unchanged."

For an analyst ratings summary and ratings history on Steven Madden click here. For more ratings news on Steven Madden click here.

Shares of Steven Madden closed at $39.00 yesterday, with a 52 week range of $27.80-$58.01.


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