Wolverine World Wide (WWW) PT Raised to $23 at Telsey

Telsey analyst Dana Telsey raised the price target on Wolverine World Wide (NYSE: WWW) to $23.00 (from $15.00) while maintaining a Market Perform rating.

The analyst commented: "WWW delivered another solid quarter with EPS upside driven by better than expected performance across the board. Stronger product pipelines and improved demand creation are showing signs of a potential inflection to growth, while Merrell turned positive this quarter (though at a modest 1% increase YoY on both a reported and constant currency basis). We remain encouraged by the company’s commitment to tightly managing inventories (down 38% in Q3 excluding Sperry divestiture) and debt paydown to shore up the balance sheet (net debt expected to decline to $545MM at year end, a reduction of $195MM from the prior year). In addition, the story becomes cleaner in our view heading into next year with the divestitures, business model changes, and inventory liquidations largely lapped. Investors who bought into the turnaround plan earlier this year are seeing the business track to plan and better. However, following yesterday's significant stock run and valuation re-rating, we see significant FY25 growth as potentially necessary to drive another significant leg up from here in a challenging wholesale and global macro environment. Therefore, we maintain our Market Perform rating. However, on the Q3 beat and improving confidence in the brand portfolio trajectory, we are raising our price target to $23 from $15. Our new price target implies a multiple of 15.3x on our two-year forward EPS estimate of $1.50 and compares to the three-year footwear sector average of 15.0x and the recent WWW multiple of 13.3x."

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