Susquehanna Upgraded Wolverine World Wide, Inc. (WWW) to Positive

November 2, 2009 11:17 AM EST

Susquehanna upgraded Wolverine World Wide, Inc. (NYSE: WWW) from Neutral to Positive, with a 30 price target. The firm said the recent pull-back and continued strength in the core brand in October make for a compelling entry point.

The firm commented, "Over the last four weeks we continue to see strength for the core Merrell brand accelerate (~37% of revenue), and we believe that will likely continue to bode well for backlog trends into 1Q10 given the limited availability of inventory. We also met last week with Don Grimes, CFO, and Mike Stornant, VP of Corporate Planning. While revenue in 4Q09 is expected to be down 9-11% due to difficult comparisons and a shift in spring deliveries to 1Q10, we believe this represents the last of the Y/Y declines. With that said, there are opportunities on the margin given tight inventory and favorable sourcing costs (down mid to high single-digits)."

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