Update shared on08 Oct 2025
Fair value Increased 5.83%Steven Madden's analyst fair value price target has increased from $30.00 to $31.75. Analysts highlight the company's recovering profit margins, improving revenue growth, and optimistic outlook following recent upgrades and raised price targets.
Analyst Commentary
Bullish Takeaways- Bullish analysts have recently raised their price targets for Steven Madden, reflecting greater confidence in the company’s growth trajectory.
- Improving inventory management is viewed as a significant strength, as it enables a faster recovery in profit margins and operational efficiency.
- There is growing optimism about the long-term margin potential. Analysts expect EBIT margins to recover from current levels, with potential expansion driven by recently acquired businesses.
- Earnings forecasts are being revised higher. Analysts see realistic potential for earnings power to exceed $4 per share, which supports the argument that the current valuation remains attractive even after recent gains.
- Some analysts remain cautious about near-term volatility. They acknowledge that despite stock price recovery, shares remain down year-to-date and could face continued pressure from broader market trends.
- Recovery in profit margins is not yet fully realized. There are execution risks tied to margin improvement and integration of acquisitions, which could delay earnings normalization.
- Current market multiples, although viewed as low by optimists, could remain suppressed if projected growth or margin expansion fails to materialize in coming quarters.
What's in the News
- Steven Madden completed the repurchase of 37,152,860 shares, representing 42.05% of shares, for a total of $1,290.53 million as part of the buyback initiated in May 2005 (Key Developments).
- No additional shares were repurchased between April 1, 2025 and June 30, 2025. The buyback program repurchased 0 shares for $0 million in this period (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen from $30.00 to $31.75, reflecting a modest increase in perceived fair value.
- Discount Rate has increased slightly from 8.999% to 9.05%, indicating a marginally higher risk premium in valuation models.
- Revenue Growth projections have edged up marginally from 10.55% to 10.57%.
- Net Profit Margin estimate has decreased narrowly from 8.52% to 8.51%.
- Future P/E has increased from 10.77x to 11.42x. This points to higher forward valuation multiples being assigned by analysts.
Disclaimer
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