Deckers Outdoor stock price target raised to $122 from $120 at BofA

Investing.com - BofA Securities maintained its Neutral rating on Deckers Outdoor (NYSE:DECK) while raising its price target slightly to $122 from $120, citing potential near-term earnings momentum. According to InvestingPro data, the company currently trades at a P/E of 17x, with 19 analysts recently revising their earnings estimates upward.

The firm’s analysis points to several positive factors for Deckers, including benefits from pricing actions implemented on July 1, strong back-to-school retail performance, potential positive catalyst from restated fiscal year guidance, and continued strength in wholesale channels, which represent 70% of second-quarter sales. The company’s financial health score on InvestingPro is rated as "GREAT," supported by impressive revenue growth of 15.5% over the last twelve months.

BofA increased its fiscal 2025 and 2026 earnings per share estimates by 1% to $6.47 and $6.76 respectively, reflecting expectations for improved sales performance. The new price target is based on an 18x price-to-earnings multiple.

Despite these positive indicators, BofA maintained its Neutral stance on Deckers, noting that near-term earnings momentum is counterbalanced by the potential for peak EBIT margins this year and elevated competition in the running footwear segment.

The firm suggested that while strong international and wholesale performance may drive near-term earnings upside, multiple expansion for Deckers stock will remain dependent on the trajectory of its direct-to-consumer business.

In other recent news, Deckers Outdoor has reported impressive first-quarter fiscal 2026 results, with revenue reaching $965 million, surpassing both Evercore ISI and Street estimates by $56 million and $64 million, respectively. The company’s earnings per share exceeded expectations by 21%, with sales surpassing forecasts by 7%, as noted by TD Cowen. Analysts from UBS maintain a Buy rating on Deckers, highlighting strong growth prospects driven by the HOKA and UGG brands, with expectations of earnings per share surprises in upcoming quarters.

Truist Securities also raised its price target on Deckers Outdoor to $145.00, citing the HOKA brand’s sales performance, which beat Street expectations. Raymond James increased its price target to $137.00, maintaining a Strong Buy rating, as Deckers demonstrated better-than-expected results across earnings per share, revenue, gross margin, and EBIT margin. Despite challenges in HOKA’s U.S. direct-to-consumer business, the overall performance of both HOKA and UGG brands exceeded revenue expectations. Evercore ISI raised its price target to $115.00, acknowledging the strong first-quarter revenue beat, with $40 million attributed to wholesale timing shifts from the second quarter.

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