Steven Madden To Gain From Brand Value Despite Shifting Trends - Analyst Highlights Almost Famous Acquisition
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Abbie Zvejnieks initiated coverage on Steven Madden, Ltd. (NASDAQ:SHOO) with a Neutral rating and a price target of $45, highlighting the brand's resilience and growth potential despite shifting trends. The acquisition of Almost Famous is expected to boost the apparel and accessories business, with low-teens earnings growth anticipated in 2024. However, increasing freight rates and delays due to the Red Sea crisis could pressure margins.
February 14, 2024 | 7:18 pm
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Steven Madden, Ltd. is expected to see growth from the acquisition of Almost Famous and shifting fashion trends, with a Neutral rating and $45 price target from Piper Sandler. However, freight challenges could pressure margins.
The acquisition of Almost Famous and the anticipation of low-teens earnings growth in 2024 suggest a positive outlook for SHOO. However, the potential margin pressure from increased freight rates and delays, particularly due to the Red Sea crisis, introduces a note of caution. The Neutral rating reflects a balanced view of these growth prospects against the operational challenges.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100