WWW Stock Jumps on Analyst Upgrade

Wolverine World Wide Inc.’s stock got a boost Thursday, after CL King & Associates released a note upgrading the stock to “strong buy” from a “neutral” rating. Wolverine’s stock closed at $23.21 at the end of trading on Thursday, up 9.5 percent.
CL King analyst Scott Krasik, the author of the note, introduced a 12-month, $26 target price for Wolverine and a full-year earnings per share estimate of $1.70, compared with the company’s own estimate of $1.50 to $1.70.
“Wolverine World Wide is managing as well as any company during this recession and is positioned to reach higher levels of profitability than ever before as soon as an economic recovery unfolds,” Krasik wrote in the note.
Krasik cited factors including a weakening U.S. dollar, compelling spring product, increased expense savings and a favorable cost environment — all of which have materialized in the time since Wolverine gave its full-year guidance in January.
“Once the retail environment stabilizes, whenever that is, Wolverine’s brands are positioned to grow again,” said Krasik, “and based on significant expense reductions, can generate higher operating margins than previously reached.”
Earlier in the week at an analyst conference, Donald Grimes, Wolverine’s CFO, said, “We have a very powerful brand portfolio, a very seasoned, experienced management team and a very strong business model and financial resources. We think we can continue to deliver superior financial results for our shareholders even in turbulent economic times.”

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