Deckers Outdoor stock price target raised to $137 by Raymond James

Published 25/07/2025, 11:32
Deckers Outdoor stock price target raised to $137 by Raymond James

Investing.com - Raymond (NSE:RYMD) James raised its price target on Deckers Outdoor (NYSE:DECK) to $137.00 from $123.00 while maintaining a Strong Buy rating following the company’s first-quarter fiscal 2026 results. InvestingPro analysis shows the company maintains excellent financial health with a perfect Piotroski Score of 9, and current trading levels suggest the stock is undervalued relative to its Fair Value.

The footwear company reported better-than-expected performance across earnings per share, revenue, gross margin, and EBIT margin. With a market capitalization of $15.68 billion and impressive revenue growth of 16.28% over the last twelve months, both HOKA and UGG brands exceeded revenue expectations, though HOKA’s U.S. direct-to-consumer business faced challenges and declined year-over-year.

Raymond James noted that HOKA’s wholesale order book remains robust with strong sell-through at full price, indicating brand strength despite weaker U.S. direct-to-consumer performance. The firm expects U.S. direct-to-consumer sales to improve as comparisons ease and execution enhances.

The analyst projects HOKA brand growth of 14% in fiscal year 2026, aligning with Deckers’ initial guidance framework. UGG also performed better than expected in the first quarter and remains on track to grow at least mid-single-digits in fiscal year 2026.

While tariffs will now create $185 million of unmitigated cost pressure (a 370 basis point gross margin headwind) versus $150 million previously due to higher Vietnam tariffs of 20%, Raymond James believes Deckers has levers to mitigate more than it currently indicates. The company’s strong financial position is evidenced by a healthy current ratio of 3.72. For deeper insights into DECK’s financial health and growth potential, including 10 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Deckers Brands reported impressive financial results for the first quarter of fiscal year 2026. The company achieved earnings per share of $0.93, significantly beating the forecasted $0.68. Revenue also exceeded expectations, reaching $965 million compared to the anticipated $900.31 million. In governance updates, Deckers Brands has nominated Patrick J. Grismer for election to its Board of Directors, succeeding Dave Powers, who will retire after more than nine years of service. Grismer brings extensive financial leadership experience, having held CFO roles at prominent companies such as Starbucks (NASDAQ:SBUX) and Hyatt Hotels (NYSE:H). Additionally, he serves on the board of Krispy Kreme (NASDAQ:DNUT) and has chaired the board of Panera Brands. These developments reflect Deckers Brands’ commitment to strong financial performance and strategic leadership.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.