Piper Jaffray Cuts PT to $16 on Wolverine World Wide (WWW) After Accounting for Seasonal Risk

Piper Jaffray maintained a Neutral rating on Wolverine World Wide (NYSE: WWW), and cut the price target to $16.00 (from $18.00), after accounting for seasonal risk. Piper Jaffray continues to monitor elevated boot inventory across the channel and believe WWW's portfolio is not immune.

Analyst Erinn Murphy commented, "In tandem with our Industry Note titled, "Spring Cleaning; Adjusting Estimates On Select Models Into Industry Events", we are reducing estimates on WWW and reducing our PT to $16. We have continued to monitor elevated boot inventory across the channel and believe WWW's portfolio is not immune. We note management is not attending ICR but we will be previewing the company's Fall 2016 product line in tandem with Outdoor Retailer on Jan 7th. We remain below the Street for Q4 at $0.29 (vs. the $0.31 Street). Our FY16 EPS estimate of $1.37 is below the Street's $1.49. In 2016, the company is focused on re-investing behind Merrell--a brand that has lacked investment for 4 years. We expect the spend to be more 1H weighted and are adjusting our estimates accordingly. Our multiple moves from 13x to 12x given our tepid growth outlook, and our PT from $18 to $16."

For an analyst ratings summary and ratings history on Wolverine World Wide click here. For more ratings news on Wolverine World Wide click here.

Shares of Wolverine World Wide closed at $16.59 yesterday.

You May Also Be Interested In

• Rentokil Initial (RTO) PT Lowered to $35 at Oppenheimer
• Knight Transportation (KNX) PT Lowered to $53 at Stifel
• HSBC Upgrades Topdanmark (TOP:DC) (TPDKY) to Hold