Susquehanna Downgrades Wolverine World Wide (WWW) to Neutral

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Susquehanna downgraded shares of Wolverine World Wide (NYSE: WWW) to a Neutral rating from their previous rating of Neutral as the stocks price recently rose 9% to $35, which is near to the firms price target of $37. The firm reports that even with the company releasing a strong guidance for FY11 and as the top-line trends appear healthy, they just feel that the risk/reward story less attractive.

With WWW reporting their new FY11 guidance, Susquehanna is now raising their FY11 and FY12 EPS estimates to $2.40 and $2.63 from $2.30 and $2.52. They comment that, "The margin dynamic remains mixed as product costs become an increasing headwind throughout the year. Gross margins are projected flat as selective price increases and an improving mix are expected to offset cost inflation. Modest SG&A leverage is expected as a double-digit marketing increase is offset by strategic cost-cutting initiatives."

For more ratings news on Wolverine World Wide click here and for the rating history of Wolverine World Wide click here.

Shares of Wolverine World Wide closed at $34.63 yesterday, with a 52 week range of $23.51-$34.89.

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Raising Prices, Susquehanna International Group of Companies

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