UBS analysts reaffirmed their Buy rating on Skechers USA (NYSE:SKX), maintaining a price target of $88 on the stock. The analysts highlighted the potential for Skechers to exceed earnings expectations over the next twelve months, which could drive the stock higher. They believe Skechers is on track to reach $10 billion in revenue by 2026, solidifying its position as the world's third-largest footwear company. According to the analysts, the market currently undervalues the strength of the Skechers brand and its growth potential.

A recent meeting with Skechers management strengthened the analysts' confidence in their outlook. They project that Skechers will achieve an approximate 15% compound annual growth rate (CAGR) in EPS over the next five years. This level of growth could result in multiple positive earnings surprises in the near term, potentially pushing the stock toward the $88 price target.