Skechers (SKX) rose by 3% on Wednesday, after a Susquehana analyst upgraded the stock.
However, we believe the downside risks may weigh through the end of its current market cycle.
Sam Poser, an analyst with Susquehanna International Group, upgraded the footwear retailer from neutral to positive. He also raised the price target from $32 to $37.
Providing a rationale for how he came to the conclusion, Poser explained that, “Proprietary checks and recent results from wholesale partners indicate Skechers’ business is gaining momentum.”
In analyzing the market cycles for SKX, we can see that the stock has fallen from the highs of this cycle, and with this rebound, it is still in resistance. While it has improved compared to the previous cycle, we believe this rally is a bit premature.
If you like Sketchers, our analysis is to wait for a better entry later in the spring, once the declining phase for this cycle has played out.
Skechers (SKX) Stock Weekly Chart
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