Goldman Sachs Starts Steven Madden (SHOO) at Sell; Sees 22% Downside
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Price: $46.75 +0.32%
Rating Summary:
15 Buy, 4 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
Rating Summary:
15 Buy, 4 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
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Goldman Sachs initiates coverage on Steven Madden (NASDAQ: SHOO) with a Sell and $35 price target, suggesting 22% downside.
The firm calls Steven Madden a well-managed company that is cyclically over-earning. "While we credit SHOO management for evolving Steve Madden into an innovative footwear and accessories company, we consider some of the recent gains as cyclically inflated from a strong non-athletic/fashion footwear product cycle. We see disproportionately negative risk to fundamentals and sentiment as the company anniversaries peak operating metrics and enters the fourth year of an unprecedented cycle," the analyst comments.
Goldman also notes: SHOO operating at historically peak fundamentals; EPS upside marginal and not enough to compensate for downside risks.
The firm said the biggest risks to their Sell call is: cycle duration, structural longevity and M&A.
For an analyst ratings summary and ratings history on Steven Madden click here. For more ratings news on Steven Madden click here.
Shares of Steven Madden closed at $44.09 yesterday.
The firm calls Steven Madden a well-managed company that is cyclically over-earning. "While we credit SHOO management for evolving Steve Madden into an innovative footwear and accessories company, we consider some of the recent gains as cyclically inflated from a strong non-athletic/fashion footwear product cycle. We see disproportionately negative risk to fundamentals and sentiment as the company anniversaries peak operating metrics and enters the fourth year of an unprecedented cycle," the analyst comments.
Goldman also notes: SHOO operating at historically peak fundamentals; EPS upside marginal and not enough to compensate for downside risks.
The firm said the biggest risks to their Sell call is: cycle duration, structural longevity and M&A.
For an analyst ratings summary and ratings history on Steven Madden click here. For more ratings news on Steven Madden click here.
Shares of Steven Madden closed at $44.09 yesterday.
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