Shares of Wolverine World Wide, Inc. (NYSE:WWW) have been climbing since last month, after the company reported strong quarterly results.
"Following stabilization and balance sheet progress across 2024, 2025 is an inflection year," according to Stifel.
Analyst Jim Duffy upgrading the rating for Wolverine World Wide from Hold to Buy, while raising the price target from $21 to $29.
The Wolverine World Wide Thesis: The company's earnings growth potential is "compelling," with prospects of high-margin revenue generation due to streamlined expenses and a decline in interest expenses due to lower debt balances, Duffy said in the upgrade note.
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Although the stock has rallied 156% year-to-date in 2024, execution across 2025 could build "credibility for sustainable growth," lending upside, he added.
"Spring orders, Saucony momentum, and distribution expansion support growth visibility into 2025 shifting investor focus to multi-year earnings power," the analyst wrote.
"Debt aversion made us late to discount improvement potential though with continued signals of foundational improvements and revenue momentum, we expect valuation framework shifts from EV/EBITDA to P/E and investor focus shifts to opportunities," he further stated.
Price Action: Shares of Wolverine World Wide had risen by 6.38% to $24.17 at the time of publication on Wednesday.
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