Rocky Brands: 2025 Recovery Presents Upside (Rating Upgrade)

Feb. 04, 2025 3:15 AM ETRocky Brands, Inc. (RCKY) Stock
Caffital Research
1.32K Followers
(9min)

Summary

  • Rocky Brands reported weak Q3 results with slow wholesale orders amid pressured consumer spending, inventory shortages, and dry weather.
  • After the weakness, Rocky has better growth prospects ahead in 2025 with improving industry growth and strong initial spring season bookings.
  • The stock discounts Rocky's earnings prospects after the primarily transitory Q3 weakness, and I now estimate 46% upside to a fair value of $36.6.

Tuotantotyöntekijä sitomassa kengännauhoja työsaappaisiinsa

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Rocky Brands, Inc. (NASDAQ:RCKY), manufacturer of boots and other footwear, reported weak Q3 results with falling wholesale revenues, related by the management to transitory weakness. Looking ahead, Rocky sees better growth with improved capacity, stronger wholesale bookings, while there are

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1.32K Followers
I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.

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