×

Shares of Skechers jump after Cowen upgrade

Shoes are displayed in the window of a Skechers store in New York City.
Getty Images
Shoes are displayed in the window of a Skechers store in New York City.

Skechers shares jumped on Friday after Cowen upgraded the stock to outperform from market perform, citing expected expansion due to growth in its international wholesale business.

Shares of the California-based company were up over 3 percent in midmorning trade.

"We think the SKX brand has built a consistent and durable brand in the United States with a breadth and depth of offering (Performance, Casual, Kids, Work) at a price to the consumer that provides tremendous value to middle-tier and lower income consumers, a market that is being largely ignored globally by other leading brands," Cowen analyst John Kernan wrote in a note on Friday.

The analyst also believes that the brand may be underappreciated on the Street, noting that 36 percent of Americans own Skechers shoes, a number that rises to 45 percent among women aged 35-54.

Kernan raised his price target to $35 from $26, marking a 27 percent upside from Thursday's closing share price of $27.44.

"We estimate SKX's International business will overtake its domestic business within the next two years," Kernan said.

The shoe retailer reported a fourth-quarter revenue beat and a stronger-than-expected sales guidance for the current quarter in February.

Skechers shares 5-day performance