11:53 AM EDT, 06/07/2024 (MT Newswires) -- Skechers USA ( SKX ) may top full-year guidance amid momentum in footwear brands, BofA Securities said Friday in a report upgrading the stock to buy.

"The wholesale environment is improving, broader footwear trends remain solid, and implied [H2] sales guidance could prove conservative," BofA said.

Skechers expects 2024 diluted EPS of $3.95 to $4.10 on sales of $8.73 billion to $8.88 billion.

BofA cited "volatility around supply chain and freight rates" as the biggest short-term operational risk.

BofA raised its Q2 earnings per share estimate to $1 and $4.15 for the full year "to reflect stronger revenues."

The firm upgraded Skechers from neutral and raised the price target to $87 from $71.

Shares of Skechers rose 2.2% in recent Friday trading.

Price: 72.63, Change: +1.58, Percent Change: +2.22