Skechers USA (SKX) PT Raised to $52 at Stifel

Stifel analyst Jimm Duffy raised the price target on Skechers USA (NYSE: SKX) to $52.00 (from $45.00) while maintaining a Buy rating.

The analyst commented, "SKX strong 1Q and 2Q guide reflects brand momentum and execution amidst reopening enthusiasm. The FY21 revenue guidance implies revenue 11%-13% higher than a 2019 baseline highlighting SKX global share gains. Implied operating margin in the mid-8% range, however, compares unfavorably to the 2019 baseline margin of 9.9% due to SG&A deleverage. While frustrated that margins continue to lag structural potential for mid-teens, it is hard to argue with the topline growth and global share gains. We continue to view the spread between margin and structural potential as opportunity with scale and time. We are raising FY21 and FY22 estimates and have more confidence in upside potential. Accordingly, we are comfortable raising the 12 mos. target from $45 to $52."

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