US stock futures dip as Trump’s firing of Cook sparks Fed independence fears
On Wednesday, TD Cowen maintained a positive outlook on Deckers Outdoor (NYSE:DECK), reiterating a Buy rating and a price target of $244.00. The firm’s analyst highlighted the strong performance of the sector, noting that Deckers and its competitors, such as AS, SKX, and ONON, have reached all-time highs in market capitalization, with an uptick in investor interest. According to InvestingPro data, 13 analysts have recently revised their earnings estimates upward, with the stock trading near its 52-week high of $218.92, reflecting a remarkable 67% return over the past year. The anticipation of Deckers’ third-quarter results, which account for 48% of the company’s annual earnings before interest and taxes (EBIT), is expected to be a significant event for investor projections for the fiscal year 2026. The company’s strong financial health is evident in its impressive 57% gross profit margin and 19.25% revenue growth over the last twelve months, as reported by InvestingPro.
The analyst pointed out that international markets could be an underexplored avenue for growth for Deckers. The HOKA brand, one of the company’s key segments, has seen an increase in the average selling price (ASP) during the holiday season, with year-over-year momentum. A particular highlight was the Skyward X model, which achieved a high ASP of $225 among both men’s and women’s categories.
Deckers’ top-selling products represent a diverse mix of its product lines, including the Clifton and Bondi franchises. The company has also seen positive contributions from new launches such as the Skyflow, Mach 6, Tecton, and Transport. The Clifton 9 and Mach 6 models were singled out as particularly noteworthy by the analyst.
Investors are likely to closely monitor the upcoming third-quarter earnings report, scheduled for January 30, to assess the company’s performance and potential for future growth, especially in the international market. The maintained Buy rating and price target reflect TD Cowen’s confidence in Deckers’ continued success and market position. For deeper insights into Deckers’ valuation and growth prospects, InvestingPro subscribers can access comprehensive financial analysis and 15 additional ProTips in the detailed Pro Research Report, available exclusively on the platform.
In other recent news, Deckers Outdoor has been the focus of several analyst revisions due to robust performance, particularly within its HOKA and UGG brands. Piper Sandler maintains a Neutral stance on Deckers, citing high market expectations and a current P/E ratio of 38.1x, with investors anticipating earnings per share around $3. The company is also investing in its business, expecting a 22% increase in selling, general, and administrative expenses.
KeyBanc Capital Markets, Citi, and Truist Securities have all raised their price targets for Deckers Outdoor, reflecting the company’s growth potential and strong sales performance. UBS reiterated a Buy rating on Deckers, forecasting a 21% five-year compound annual growth rate in sales for the HOKA brand, while Baird maintained an Outperform rating, emphasizing the company’s sustainable growth.
Deckers Outdoor’s strong earnings and revenue growth, along with positive analyst projections, underscore these recent developments. The company’s HOKA and UGG brands are driving revenue growth, with HOKA’s focus on product development and UGG’s efforts to diversify its product offerings contributing to the positive outlook. Deckers is also updating two of its most popular HOKA shoe franchises, the Bondi and Clifton, which are anticipated to boost the company’s performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.