Skechers downgraded as window for another bidder to emerge has closed
Investing.com -- TD Cowen downgraded Skechers to Hold in a note Wednesday, highlighting a closed window for competing acquisition offers following 3G's announced deal.
'We are downgrading to Hold as the window for another bidder for Skechers to emerge has closed,' the analysts wrote.
The $63 per share buyout offer from 3G Capital equates to 13.5 times TD Cowen's fiscal year 2027 earnings-per-share estimate and 6 times FY27 estimated EV/EBITDA—figures that align with the firm's prior price target but fall short of its bullish case.
'Sector valuation is +24% from April lows and now in line with 10 and 5 yr median P/E, awaiting more trade deals,' the analysts noted.
TD Cowen called this the 'largest deal in Softlines Retail sector history,' well above the $2.5 billion Reebok acquisition, and framed it as 'opportunistic investing in the sector during a time of uncertainty.'
The deal is said to include a unique structure: shareholders may receive either $63 in cash, or $57 in cash plus one LLC unit, with proration.
'Insiders owned roughly 14% of the shares pre-deal,' TD Cowen said, and stand to collect over $1.3 billion in proceeds.
They add that management could maintain a 'sizable ownership position' depending on shareholder elections.
Looking ahead, TD Cowen sees 3G pursuing margin expansion via cost-cutting and efficiencies, potentially leading to Skechers going public again.
But near-term concerns remain: 'Capex as a % of sales is reaching all-time highs,' and the business model is 'heavy on distribution growth and working capital needs.'
Related articles
Skechers downgraded as window for another bidder to emerge has closed
Tesla and xAI merger possible, predicts Musk biographer Isaacson
TSX up slightly ahead of NVIDIA earnings
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
Elon Musk's New Budget Bill Threat Sends Republicans Scrambling
Congressional Republicans are stuck between a rock and a hard place as their former financier, Elon Musk, threatens to use his gargantuan fortune to unseat anyone who supports the president's 'big, beautiful bill.' Last month, Musk confessed in an interview with CBS that he believed Donald Trump's spending package—which would add trillions to the national deficit in order to extend his 2017 tax cuts for the wealthy—was actually a bad idea. But the tech billionaire has become more brazen in his read of the bill in the weeks since he's left the White House. 'I'm sorry, but I just can't stand it anymore,' Musk wrote Tuesday afternoon on X, the social media platform he owns. 'This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it.' In a separate post, the world's richest man—who had promised to bankroll Republican primaries mere months ago—made clear what he now planned to do with his cash. 'In November next year, we fire all politicians who betrayed the American people,' wrote Musk. The bill passed the House by a vote of 215-214, with two Republicans joining all Democrats in voting against it. Republicans plan to offset the expensive tax cut by slashing more than $800 billion from Medicaid. But Musk's issue with Trump's plan has little to do with slashing programs aimed at supporting and uplifting the most vulnerable Americans—instead, he's condemned the bill since it would effectively undo his work atop the Department of Government Efficiency, which was tasked with paring down government spending. Senator Rand Paul quote-tweeted Musk, arguing that Congress knows adding another $5 trillion to the national debt would be a 'huge mistake.' Senators Ron Johnson, Rick Scott, and Mike Lee have also spoken out against the bill's price tag. Senators Josh Hawley, Susan Collins, Lisa Murkowski, and Joni Ernst have claimed that slashing Medicaid—the third rail of American politics—could prove to be a fatal political move. Senators John Curtis and Thom Tillis have drawn red pen under the bill's elimination of green energy tax cuts. Representative Marjorie Taylor Greene told NewsNation Tuesday that she agreed with Musk 'to a certain extent,' hitching herself to the tech billionaire as another conservative who entered government because she was irate with Republicans. 'However, I don't want to continue this government on a CR that's funding Democrat and Biden policies and funding, and this bill was important to transition over to exactly what the American people voted for,' Greene said. The Georgia lawmaker further specified that she was wary of some of the inclusions tacked on to the bill, one of which would prevent states from drafting regulation around the artificial intelligence industry for the next decade. 'I think that's pretty terrifying,' she told NewsNation. 'We don't know what AI is going to be capable of within one year, we don't know what it will be capable of in five years, let alone 10 years.' (Greene had admitted earlier Tuesday that she hadn't actually read the bill before voting in favor of it.) Representative Scott Perry also hailed Musk as 'right to call out House leadership' over the bill. 'We expect MASSIVE improvements from the Senate before it gets back to the House,' he wrote on X Tuesday. (Perry voted for the bill.) Still, Republican leadership has continued to defend the spending bill. 'It's very disappointing, okay?' House Speaker Mike Johnson told CNN, reacting to Musk's threat. 'I've come to consider Elon a good friend. But with all due respect, my friend Elon is terribly wrong about the One Big Beautiful Bill.' The White House similarly brushed off Musk's threat. 'The president already knows where Elon Musk stood on this bill,' Press Secretary Karoline Leavitt said during a press briefing Tuesday. 'It doesn't change the president's opinion.' Musk was Trump's top financial backer in the 2024 election, spending at least $250 million in the final months of the president's campaign after Trump was shot in July. Musk had also promised to funnel funds toward other Republicans, declaring in the wake of the November election that his super PACs would 'play a significant role in primaries.' In the following months, Musk threatened to use his money to fund primary challengers to Trump's agenda and go after Democrats, and that he would be preparing 'for the midterms and any intermediate elections, as well as looking at elections at the district attorney level.'
Yahoo
17 minutes ago
- Yahoo
Elon Musk is criticizing Donald Trump — and Trump isn't hitting back. Why?
If you come at Donald Trump, he's going to respond. Unless, apparently, you're Elon Musk. Trump hasn't said a word about Musk's public complaints about Trump's budget bill. It's hard to imagine Trump staying silent forever. But even this restraint tells you a lot about the Musk/Trump alliance. A pretty fundamental rule of political physics in our age: If you criticize Donald Trump, he roars back. Which makes what's happening now worth noting: Elon Musk is criticizing Donald Trump, and Trump … isn't responding. As you likely know by now, on Tuesday afternoon, Musk used his X account to complain about the Republican budget bill — the one that's supposed to be Trump's signature legislation, and the one that's literally called the "One Big Beautiful Bill" act because that's the name Trump likes. More specifically: Musk called the bill "a disgusting abomination." "Shame on those who voted for it: you know you did wrong. You know it," he added. That story — the richest man in the world, and for at least several months, a key Trump ally, blasting a Trump project in public — dominated Tuesday's news cycle. Even Fox News had to cover it. And under normal circumstances, Trump would rage back. Not this time, though. Trump has yet to acknowledge Musk's broadside out loud, or on his Truth Social platform. When a Fox News reporter asked White House press secretary Karoline Leavitt "how mad" Trump would be when he learned about Musk's comments, she had a restrained answer ready: "The president already knows where Elon Musk stood on this bill. It doesn't change the president's opinion. This is one big, beautiful bill, and he's sticking to it." And when I asked the White House press office for comment Wednesday morning, they referred me to Leavitt's previous statement. Obvious conclusion: For now, at least, the Trump team is going out of its way not to stoke a feud with Musk. It seems very unlikely that Trump's silence is going to be permanent: Trump loves holding forth in front of the press, so someone's going to ask him about it at some point. Still, this level of what seems to be restraint is remarkable for a man who doesn't usually restrain himself, and who loathes people who poke at him in public. What's happening? For starters, it's worth noting that Trump has already gone through a version of this. Last week, Musk used much more muted language to criticize the same bill in a CBS interview, and those comments also became a news story. And Trump didn't fire back at Musk then, either — even when asked about it at a press conference. It's also worth noting that even though Musk used scathing language to condemn the bill on Tuesday, he never once criticized Trump directly. That gives both men rhetorical wiggle room: Musk can argue that his problems with the bill have nothing to do with the man who's promoting it. And Trump can lump in Musk's critique along with everyone else who has problems with the bill, including some Republicans like Rep. Marjorie Taylor Greene. But it's also likely that the most likely thing is the most likely thing: That Donald Trump has enormous admiration for Elon Musk, and treats him differently than just about anyone else in the world. And that even though Musk has officially left his role as a part-time White House advisor, Trump still wants him on his side. For now. Read the original article on Business Insider
Yahoo
17 minutes ago
- Yahoo
Republicans who agree with Elon Musk's megabill criticisms pose a problem for Trump
Donald Trump has invested a fair amount of energy recently in trying to keep his party from splintering. In late April, for example, the president wrote via social media that he didn't want anyone to think that there is 'dissension' within the Republican Party. He added, 'There is not, there is only LOVE and UNITY.' In mid-May, Trump published a related message online, declaring, in reference to his party's domestic policy megabill, 'Republicans MUST UNITE behind, 'THE ONE, BIG BEAUTIFUL BILL!'' The president's continued efforts aren't going especially well. His top campaign donor, Elon Musk, free to speak with more candor now that he's left his White House office, condemned the GOP legislation Tuesday, writing to the social platform he owns, 'I'm sorry, but I just can't stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it.' The billionaire added soon after, in apparent reference to lawmakers who voted for the GOP reconciliation package, 'In November next year, we fire all politicians who betrayed the American people.' Republican leaders in the House and Senate scrambled to publicly disagree with Musk's assessment of their bill, but some GOP lawmakers were equally quick to agree with their party's megadonor, which complicated matters. Politico reported that some Republicans 'were thrilled' by his criticisms. 'These numbers are nothing short of stunning,' Sen. Mike Lee (R-Utah) responded. 'Congress has hollowed out America's middle class through reckless deficit spending and the inflation it causes.' Sen. Rand Paul (R-Ky.), who has reiterated his opposition to the bill, said to reporters on Tuesday that Musk 'has some of the same skepticism' as him that the bill is 'just not conservative.' Republican Rep. Andy Harris of Maryland, the chair of the right-wing House Freedom Caucus, said lawmakers 'ought to pay attention' to condemnations like Musk's. Republican Rep. Scott Perry of Pennsylvania, the former Freedom Caucus chair, said he's also come to agree with Musk, despite having earlier voted for the bill. On the other side of Capitol Hill, Republican Sen. Ron Johnson of Wisconsin, a critic of the House bill, said Musk's opposition 'helps bolster the case.' Around the same, White House press secretary Karoline Leavitt was asked whether senators such as Johnson and Paul are 'blatantly wrong' about the party's megabill, and the president's chief spokesperson said that they are. In other words, the problem for the White House isn't just that Musk is using his platform and public profile to attack the legislation, it's also that several Republican lawmakers have aligned themselves with those condemnations, splintering the party even as the president demands 'unity.' Against this backdrop, The New York Times reported that some of the Republican lawmakers who rallied behind the bill 'are claiming buyer's remorse' and expressing 'regret.' If Trump's goal was to prevent intraparty 'dissension,' he appears to be failing. This article was originally published on
