Goldman Sachs Upgrades Steven Madden (SHOO) from Sell to Buy

August 5, 2013 7:21 AM EDT
Get Alerts SHOO Hot Sheet
Price: $35.40 +0.57%

Rating Summary:
    9 Buy, 9 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Goldman Sachs upgraded Steven Madden (NASDAQ: SHOO) from Sell to Buy with a price target of $69.00 (from $43.00). Analyst Taposh Bari put focus on capital allocation.

"We believe the likelihood of shareholder value enhancing capital allocation is high at SHOO. The company’s capacity for such an event continues to grow with a 6% free cash flow yield and an overcapitalized balance sheet that now has 1.3x net cash/EBITDA. We think the recent continuation of share repurchase activity may be the tip of the iceberg. We believe more meaningful buybacks, dividends, and/or M&A are all likely uses. We believe the time is ripe given SHOO’s limited capital needs, a growing cash balance, and low interest rates," he said.

For an analyst ratings summary and ratings history on Steven Madden (NASDAQ: SHOO) click here. For more ratings news on Steven Madden click here.

Shares of Steven Madden closed at $53.31 yesterday.

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