Wedbush Neutral On Skechers (SKX)

Wedbush is maintaining its Neutral rating on Skechers USA, Inc. SKX and its $23 price target on shares. In a note sent to clients Wedbush writes, "SKX held an analyst day event at their NY showroom today. We came away with mixed feelings. On the one hand we believe the company continues to produce an impressive set of footwear offerings across many different categories (fitness, work, and casual) for men, women and kids. On the other hand, we remain concerned with the amount of excess toning inventory that remains in the channel and on their balance sheet to be worked down. Judging by our channel checks, we believe toning sell through has not reaccelerated which bodes ill for Q4, in our opinion. In fact we believe Q4 inventory growth could mirror that of Q3, which would not be received well by the market. As such, we believe near-term risks are still present and remain on the sidelines until the excess inventory situation improves." Shares of SKX closed at $22.38 on Friday.