Analyst begins coverage of Steve Madden, says brands and distribution will drive growth

Analyst starts coverage of Steve Madden Ltd.

NEW YORK — An analyst started coverage Wednesday of Steve Madden Ltd., saying the shoe maker has a strong array of brands and sells them across a variety of channels, which will help drive earnings growth.

THE OPINION: Wedbush analyst Camilo Lyon assumed coverage of the Long Island City, N.Y., company with an “Outperform” rating and $50 target share price.

He said the company is reaching a variety of customers with its brands, including Big Buddha and Madden Zone, and its various distribution channels.

Madden is also improving its profitability at the retail level by shuttering stores, closing 20 between 2007 and 2010. Lyon said 14 more leases come due next year, which will give the company even more room to boost profits. Lyon also said the company’s cash holdings are strong so it can go after new brands.

THE STOCK: Shares of Steve Madden fell 78 cents to $42.94 in afternoon trading Wednesday.