Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - TD Cowen has reduced its price target on Deckers Outdoor (NYSE:DECK) to $125.00 from $154.00 while maintaining a Buy rating on the footwear company’s stock. The new target comes as DECK trades near its 52-week low of $93.72, with the stock down over 51% year-to-date.
The firm’s second-quarter estimates remain above consensus but it has lowered expectations for the third and fourth quarters, as well as fiscal year 2027, to account for potential tariff impacts and the possibility of third-quarter margin and earnings per share guidance falling below consensus estimates. Despite these concerns, InvestingPro data shows DECK maintains strong fundamentals with a 57.6% gross margin and 15.5% revenue growth in the last twelve months.
TD Cowen noted that its market checks and data analysis for the company’s UGG and HOKA brands indicate stable consumer trends despite the macroeconomic pressures.
The research firm suggested that Deckers’ current valuation assigns little value to its international growth potential and the company’s financial model, which delivers a 65% return on invested capital.
TD Cowen also referenced its survey work in the report, which highlights HOKA’s strengthening market position among consumers in the premium footwear segment.
In other recent news, Deckers Outdoor has been the focus of several analyst reports highlighting varying perspectives on the company’s growth and financial outlook. UBS has reiterated its Buy rating on Deckers Outdoor, maintaining a price target of $158, based on expectations of strong sales growth from the HOKA and UGG brands and potential earnings per share surprises in upcoming quarters. In contrast, Bernstein has maintained an Underperform rating with a price target of $100, citing concerns about a structural slowdown in sales and margins over the long term despite potential short-term trend acceleration. BofA Securities has adjusted its price target to $122 from $120, maintaining a Neutral rating, and noted potential near-term earnings momentum supported by pricing actions and strong retail performance. UBS also slightly lowered its price target to $157 from $158 due to modest improvements in the Hoka brand’s direct-to-consumer channel growth. These developments reflect the mixed sentiment among analysts regarding Deckers Outdoor’s financial trajectory and growth potential.
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