Analyst downgrades Wolverine stock to 'hold'
Wolverine World Wide (NYSE: WWW), which makes Merrell and Patagonia Footwear, was downgraded by a Lazard Capital Markets analyst, who cited worries about slowing global sales and currency fluctuations.
Analyst Todd Slater told investors in a research note that the company's share price is high compared to peers, adding that there were concerns about Wolverine's brands.
"We are concerned that the Merrell brand is maturing and may be pushing the channel distribution envelope. Wolverine continues to aggressively push its U.S. distribution model, but this could negatively impact brand cachet," the analyst wrote.
As for currency concerns, the analyst said 40 percent of revenue comes from outside the U.S., especially from Canada and from countries that use the euro, and could pose a problem.
He downgraded Wolverine from "buy" to "hold" on Nov. 26.
--Compiled by Wendy Geister
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