On Tuesday, UBS maintained a Neutral rating on Wolverine World Wide (NYSE:WWW) while increasing its shares target to $11.00 from the previous $9.00. The adjustment comes as the firm acknowledges the ongoing challenges in Wolverine's business fundamentals but recognizes that these issues are already reflected in the company's projections and the consensus estimates of market analysts.
Wolverine World Wide is expected to deliver a first-quarter report that aligns with current expectations, with no anticipated changes to the company's full-year 2024 earnings per share (EPS) guidance of $0.65 to $0.85. This stability is projected to sustain the Street's EPS forecast at approximately $0.74, in line with existing levels.
The market's outlook on Wolverine World Wide is not predicted to shift following the Q1 report, as the sentiment is believed to be already factored into the stock's performance. The options market has priced in a potential earnings-related price movement of plus or minus 11.5%, which is significantly higher than the historical average move of 6.4%. However, UBS expects the actual volatility around the earnings report to be less than the options market suggests.
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