Buy Skechers on its new shoe products turnaround, Citi Research says

• Citi Research recommends Skechers shares, saying its new products will drive earnings above expectations next year.
• The firm raises its price target for Skechers to $30 from $28, representing 18 percent upside from Wednesday's close.

Pedestrians walk past Skechers shoes displayed outside of a store in San Francisco, California.

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Investors should buy Skechers shares, saying its new products will drive earnings above expectations next year, according to Citi Research.

The Citi analyst raised her rating on the footwear company to buy from neutral.

"SKX has developed a healthier, more diversified business (geographically & product-wise) and improved retail relationships, in our view," Corinna Van der Ghinst wrote in a note to clients Thursday. "We first previewed Skechers' new FY17 product platforms at FFANY [Fashion Footwear Association of New York] in December, these new products are just now translating into improved performance at retail and accelerating backlogs."

Skechers shares are down 19 percent in the past 12 months through Wednesday. The S&P 500 is up 15 percent during that period.