Sterne Agee Upgrades Brown Shoe Co. (BWS) to Buy

Sterne Agee upgraded Brown Shoe Co. (NYSE: BWS) from Neutral to Buy with a price target of $37.00.

Analyst Sam Poser commented, "Upgrading to Buy from Neutral as hard work is paying off. To our surprise, total wholesale revenue has finally inflected, up 18% in 3Q14, with an operating margin increase of 330bps. Despite the fact that Famous Footwear's 3Q14 SSS were down 0.2%, SSS early in the quarter, during BTS, increased 1.6%. Famous's 4Q14 SSS to date are up MSD. Inventory levels are in line with sales. Guidance is likely a bit conservative, despite the fact that it was increased above the 3Q beat."

The firm is FY14/15/16 EPS estimates from $1.59/$1.87/$2.04 to $1.70/$1.90/$2.17.

For an analyst ratings summary and ratings history on Brown Shoe Co. click here. For more ratings news on Brown Shoe Co. click here.

Shares of Brown Shoe Co. closed at $31.28 yesterday.

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