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BTIG began reporting on Steven Madden (NASDAQ: SHOO) on Tuesday with a buy recommendation.
Analyst Janine Stichter said SHOO is one of the most consistent performers in the footwear space and continues to gain market share as retailers increasingly focus their bets with brands that have a strong track record. Founder and team believe that wholesale demand for Steven Madden (HUNT) won’t stay depressed forever.
“We see SHOO as an early and outsized beneficiary of a large-scale recovery, given their industry-leading speed to market and ability to ride a trend, just as we saw post-COVID. While we lack exact clarity on when this will become a reality, we believe we are in the final stages of large-scale destocking.”
Notably, Steven Madden (SHOO) stands out from its peers with its quick-turn model, which allows the company to take a product from design to delivery in just six to eight weeks, less than half the industry standard.
Looking ahead, BTIG believes it will see earnings growth accelerate after demand picks up again. The company is also expected to benefit from multiple expansion, or at least return to historical levels. Meanwhile, SHOO’s strong balance sheet and agile business model would provide investors with downside protection.
BTIG assigned a $40 price target to Steven Madden (SHOO) based on a 15x P/E multiple and 9x EV/EBITDA multiple through 2024 estimates.
Shares of Steven Madden ( SHOO ) are down 1.7% this year.