Williams Trading has revised its rating for Shoe Carnival (SCVL, Financial), downgrading the company from a "Buy" to a "Hold." The price target has been significantly lowered to $17 from a previous $30. This change reflects broader adjustments across the firm's retail coverage, including an average reduction of 20.4% in the price-to-earnings ratio, due to concerns over how tariffs might affect margins, pricing, and overall demand.
The firm highlights potential challenges due to the recent 145% increase in tariffs on goods imported from China, which has disrupted product shipments to the United States. Given that many brands rely heavily on Chinese manufacturing and generate a substantial portion of their sales in the U.S., their sales and margin opportunities are at risk. As a result, Williams Trading anticipates that companies may either refrain from issuing forward guidance or withdraw existing guidance altogether.
Specifically for Shoe Carnival, the analyst notes that increased tariffs are particularly impactful on the company's women's casual and dress shoes, children's footwear, and certain athletic shoes, which are predominantly manufactured in China. These tariff-induced challenges could impede the company's performance and future prospects.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Shoe Carnival Inc (SCVL, Financial) is $28.00 with a high estimate of $30.00 and a low estimate of $26.00. The average target implies an upside of 68.47% from the current price of $16.62. More detailed estimate data can be found on the Shoe Carnival Inc (SCVL) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Shoe Carnival Inc's (SCVL, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Shoe Carnival Inc (SCVL, Financial) in one year is $25.39, suggesting a upside of 52.77% from the current price of $16.62. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Shoe Carnival Inc (SCVL) Summary page.
