Hansen, Mueller Industries director, sells $105,710 in stock
Investing.com - TD Cowen has lowered its price target on Deckers Outdoor (NYSE:DECK) to $124.00 from $125.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $92 to $157.
The firm noted that second-quarter results were led by wholesale growth of 13% and international sales increasing by 29%, though U.S. sales declined by 2%. The company maintains robust financial health with a "GREAT" overall score on InvestingPro, supported by strong profitability metrics including a 57.6% gross margin.
TD Cowen indicated that the second-half implied revenue guidance for UGG to decline by mid-single to high-single digits year-over-year likely contains some conservatism heading into UGG’s third quarter, while HOKA guidance suggests low-teens growth in the second half.
The research firm believes consensus estimates for fiscal year 2027 are too high compared to their model, though they remain positive on the stock’s valuation.
TD Cowen projects that the multi-year growth outlook could still deliver a low-double-digit earnings per share compound annual growth rate, assuming margin expansion potential beyond fiscal year 2027.
In other recent news, Deckers Outdoor reported fiscal second-quarter results that surpassed expectations, with revenue outperforming estimates by $13 million and earnings per share exceeding projections by $0.26. Despite these positive results, analysts have expressed concerns about the company’s key brands, HOKA and UGG, leading to a series of price target reductions. Bernstein SocGen Group lowered its price target to $85, citing shrinking U.S. sales and margin compression for both brands. Telsey Advisory Group also reduced its price target to $105, noting sequential deceleration in brand performance, although UGG outperformed market expectations. BTIG maintained a Neutral rating, highlighting that HOKA’s performance aligned with expectations but faced challenges in the U.S. market. Needham decreased its price target to $113, while Stifel lowered it to $117, both firms maintaining their respective ratings due to concerns about brand growth. These adjustments reflect a cautious outlook from analysts despite Deckers Outdoor’s strong quarterly performance.
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