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Investing.com - KeyBanc lowered its price target on Wolverine World Wide (NYSE:WWW) to $24.00 from $32.00 on Thursday, while maintaining an Overweight rating on the footwear company’s stock. The adjustment comes as WWW shares have plummeted 27.46% over the past week, with the stock now trading at $16.72, according to InvestingPro data.
The price target reduction follows what KeyBanc described as a "solid beat across the board" in Wolverine’s latest earnings report, driven by growth at its Saucony and Merrell brands. Despite recent volatility, InvestingPro analysis shows the company remains profitable with a P/E ratio of 15.99 and is expected to grow net income this year.
Despite the strong performance, KeyBanc cited concerns about fiscal year 2026 margin pressures due to growing tariff headwinds, prompting a more conservative stance on future earnings estimates.
The investment firm indicated it’s seeking further clarity on Wolverine’s tariff mitigation efforts, while expressing confidence that the company can offset some of the cost pressures and continue positioning for long-term value creation.
KeyBanc maintained its Overweight rating, suggesting that while "patience may be required," long-term investors "will be rewarded" despite the challenging backdrop.
In other recent news, Wolverine World Wide reported third-quarter revenue of $470.3 million, surpassing both Stifel’s estimate of $466.6 million and the consensus forecast of $462.6 million. This performance was driven by an 8.8% growth in its Active Brands, with notable increases in the Saucony and Merrell brands. In personnel news, Wolverine World Wide appointed Justin Cupps as President of its Work Group, where he will oversee several work footwear brands and report directly to the company’s CEO. Meanwhile, the company declared a quarterly dividend of $0.10 per share, maintaining its annual dividend at $0.40 per share. Analyst activity included UBS lowering its price target for Wolverine World Wide to $28, citing growth outlook considerations, though it maintained a Buy rating. Stifel also reaffirmed its Buy rating with a price target of $36 following the earnings report. These developments reflect Wolverine’s ongoing strategic initiatives and financial performance.
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