Stifel Upgrades Wolverine World Wide Inc
Investing.com — Stifel upgraded its rating on Wolverine World Wide Inc (NYSE:WWW), projecting strong earnings growth from 2025 onwards thanks to recent stabilization and effective balance sheet measures.
Stifel revised its rating for WWW from Hold to Buy and increased the target price from $21 to $29, indicating a nearly 28% upside from its Tuesday closing price.
The brokerage anticipates 2025 will be an "inflection year" for WWW, highlighting significant potential due to spring orders, momentum in its Saucony running shoes brand, and expanded distribution, which enhance the company's multi-year earnings power.
Stifel commended the transformation of WWW under CEO Chris Hufnagel, who transitioned from President to CEO in August 2023. The company is expected to enter the third phase of Hufnagel’s growth plan—transitioning into the growth phase—in 2025.
The brokerage believes WWW possesses compelling earnings growth potential, attributed to high-margin revenues and a streamlined expense base.
Stifel analysts noted, "An upside case is predicated on execution across 2025, building credibility for sustainable growth, and valuation based on earnings power in 2026 and beyond."
They estimate WWW’s adjusted earnings per share in 2025 to be $1.38 with revenue growth of 7.5%. Furthermore, the target price could increase with better execution and indicators of improving trends in 2025.
Comments (0)