Stifel sees a strong bull case for casual footwear and apparel company Wolverine World Wide . The firm upgraded Wolverine World Wide, which owns Merrell and Saucony shoemaker brands, to buy from hold. It also lifted its price target by $8 to $29, which suggests shares could gain 27.6%, after soaring more than 155% this year already. “Following stabilization and balance sheet progress across 2024, 2025 is an inflection year. Spring orders, Saucony momentum, an distribution expansion support growth visibility into 2025 shifting investor focus to multi-year earnings power,” analyst Jim Duffy wrote in a note. The company’s lower debt levels make the stock a compelling story now, according to Duffy. He also sees at least high-single digit growth next year, saying the company’s execution will boost profits. “Earnings growth potential is compelling as high margin revenue inflects on the streamline expense base and interest expense moderates with lower debt balances,” Duffy said. “An upside case is predicated on execution across 2025, building credibility of sustainable growth, and valuation.” WWW YTD mountain Wolverine World Wide performance this year. Behind Wolverine World Wide’s transformation was its divestment of its Sperry and Keds brands, as well as its transition to a new operating model with its Merrell and Saucony China businesses. The company’s decision to sell its U.S. and Asia-based leathers business announced in late 2023 has also boosted the business, according to Stifel. “Following these actions, WWW is left with a more logical business portfolio of eleven performance-based brands thematically focused on health, wellness, and activities,” Duffy said. “The brand portfolio is purposefully less subject to fashion volatility.” Shares rose 3.2% on Wednesday before the bell. Of the 10 analysts covering the shoemaker, 6 rate it as a buy while four have a hold rating, per LSEG.
