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On Tuesday, TD Cowen raised its price target on Deckers Outdoor (NYSE: NYSE:DECK) stock to $175 from the previous $150 while maintaining a Buy rating. The firm’s analysts attribute the increase to the strong performance and future expectations for the HOKA brand, which saw a significant top-line exit rate in Q4 and promising initial guidance for FY26. They also anticipate continued momentum for the UGG brand leading into FY26, following a distorted rate in Q4. According to InvestingPro data, Deckers boasts excellent financial health with a perfect Piotroski Score of 9 and impressive revenue growth of 19.5% over the last twelve months.
The analysts at TD Cowen have conducted field work and analyzed the top-selling SKUs across key athletic brands, noting that the mix of HOKA best sellers for both men and women has shown year-over-year price increases for the basket of top-selling SKUs going into May. This analysis supports their decision to raise the target price to $175. The company’s strong pricing power is reflected in its healthy gross profit margin of 57.8%, as reported by InvestingPro.
The positive sentiment surrounding Deckers Outdoor is largely influenced by the performance of the HOKA brand, which has become a significant driver of sales and is expected to contribute to the company’s revenue growth. The analysts’ field work suggests that the brand’s pricing power remains strong, with consumers willing to pay more for top-selling items.
Deckers Outdoor has been focusing on expanding its product offerings and strengthening its brand portfolio, which includes the HOKA athletic shoes and UGG footwear. This strategic approach has been resonating well with consumers, as evidenced by the strong sales figures and positive market response.
Investors have shown optimism following the updated price target, reflecting confidence in Deckers Outdoor’s growth trajectory and brand strength. The company’s stock performance will continue to be closely watched as it progresses towards its FY26 goals and capitalizes on the robust demand for its HOKA and UGG brands.
In other recent news, Deckers Outdoor has seen a variety of developments that may interest investors. The company is set to release its fourth fiscal quarter earnings on May 22. Piper Sandler has maintained a Neutral rating on Deckers, significantly lowering its price target from $210 to $100, citing a conservative earnings forecast for fiscal year 2026. UBS, on the other hand, increased its price target for Deckers to $158 and maintained a Buy rating, noting strong performance from the Hoka brand. Raymond (NSE:RYMD) James upgraded Deckers to a Strong Buy, setting a new price target at $150, and highlighted the potential for the company to outperform expectations in its upcoming financial results.
Evercore ISI also maintained its Outperform rating with a price target of $235, while cautioning about potential gross margin compression and earnings per share decline due to cost pressures. Analysts from Piper Sandler and Raymond James have expressed differing views on Deckers’ growth trajectory, with Piper Sandler expecting a slowdown and Raymond James optimistic about long-term prospects. The varying analyst opinions reflect the market’s uncertainty regarding Deckers’ future performance, particularly in light of potential tariff impacts and growth expectations for its UGG and Hoka brands. Despite these challenges, Deckers continues to navigate a competitive global market, with its strategic focus on brand growth and cost management remaining crucial.
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