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Investing.com - UBS lowered its price target on Deckers Outdoor (NYSE:DECK) to $144.00 from $169.00 on Thursday, while maintaining a Buy rating on the footwear company’s stock. The company, currently trading at $99.06, has seen its shares decline over 53% in the past six months, according to InvestingPro data.
The price target reduction comes amid investor concerns about growth trends in Deckers’ Hoka brand, particularly in its US direct-to-consumer (DTC) channel. UBS noted that market participants believe trends in this segment are "lackluster" and doubts the company’s upcoming first-quarter report, due in 7 days, will change this perception. Despite these concerns, InvestingPro data shows the company maintains strong fundamentals with a perfect Piotroski Score of 9 and revenue growth of 16.28%.
UBS also cited tariff-related uncertainty as creating "a wide range of scenarios" for potential guidance from Deckers, making it difficult to have a strong call on the quarter. Despite the lower price target, the firm maintained its Buy rating on the stock.
The options market is pricing in a potential 12.0% move in either direction for Deckers shares following its earnings report, compared to a historical average move of 7.6%, according to UBS.
While UBS acknowledged that Deckers’ current stock price appears low, the firm does not believe bad news is "already fully priced in" to the shares.
In other recent news, Deckers Outdoor has experienced several notable developments. BofA Securities lowered its price target for Deckers Outdoor to $114, citing concerns about HOKA’s direct-to-consumer sales. BofA forecasts first-quarter earnings per share to be $0.66, slightly below the consensus estimate. Meanwhile, Citi maintains a Buy rating with a $150 price target, expecting Deckers to surpass earnings expectations due to stronger UGG sales and gross margin performance. UBS analysts also reiterated their Buy rating, projecting that Deckers’ earnings per share will exceed market expectations over the next year, driven by HOKA’s accelerated sales growth. Stifel analysts maintained a Hold rating with a $127 price target, noting that Deckers’ fourth-quarter performance exceeded expectations, although HOKA’s revenue fell short. Additionally, BofA revised its price target to $128, maintaining a Neutral rating, and highlighted concerns about HOKA’s growth potential in the U.S. running market. These developments reflect varied expectations from analysts regarding Deckers’ future performance.
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