Williams Trading has downgraded Steven Madden (SHOO, Financial) from a Hold to a Sell, significantly cutting its price target from $35 to $16. This move reflects the firm's concern about the uncertain impact of tariffs on the company's pricing, margins, and demand. Overall, Williams Trading has reduced price targets and estimates across its retail coverage, adjusting the average price-to-earnings multiple downward by 20.4%.
The imposition of an additional 145% tariff on Chinese goods has halted product shipments to the U.S., posing challenges for brands that depend heavily on Chinese manufacturing and generate a significant portion of their sales domestically. As a result, Williams Trading anticipates that companies within its coverage may either refrain from offering forward guidance or withdraw existing guidance altogether.
Steven Madden is identified as the most adversely affected within Williams Trading's coverage due to its reliance on Chinese production and U.S. sales. The firm expects that Steven Madden may reduce or possibly withdraw its fiscal 2025 guidance when it reports in early May, highlighting the pressure these tariffs have placed on the company's financial outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Steven Madden Ltd (SHOO, Financial) is $34.78 with a high estimate of $46.00 and a low estimate of $24.00. The average target implies an upside of 79.50% from the current price of $19.38. More detailed estimate data can be found on the Steven Madden Ltd (SHOO) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Steven Madden Ltd's (SHOO, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" 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 Steven Madden Ltd (SHOO, Financial) in one year is $52.99, suggesting a upside of 173.5% from the current price of $19.375. 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 Steven Madden Ltd (SHOO) Summary page.
