UPDATE: D.A. Davidson Upgrades Wolverine World Wide; Raises PT

According to a research report published this morning, D.A. Davidson has upgraded Wolverine World Wide WWW from Neutral to Buy, and raised PT from $42 to $50. In the report, D.A. Davidson commented, "Wolverine, Blum Capital Partners, and Golden Gate Capital agreed to buy Collective Brands Inc. (PSS – $21.16) for $2.0 billion. Upon closing this transaction in 3Q/early 4Q, Wolverine will acquire Collective Brand's wholesale and retail operations for the Sperry, Stride Rite, Saucony, and Keds brands (collectively known as PLG) for $1.23 billion, which values the portfolio at 10x 2012 EV/EBITDA based on Collective Brand's 2012 EBITDA forecast. The deal is expected to close in late 3Q, early 4Q. The deal is expected to be accretive by $0.25-$0.40 in 2013 and $0.50-$0.70 in 2014 (excluding integration costs)." Wolverine World Wide closed yesterday at $40.10.