S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
On Wednesday, Needham maintained a Buy rating on Deckers Outdoor (NYSE: NYSE:DECK), but significantly reduced the price target from $246.00 to $150.00. The adjustment comes as the firm anticipates Deckers’ fourth-quarter earnings report, scheduled for release after the market closes on Thursday, will not serve as a strong positive driver for the stock’s value. According to InvestingPro data, DECK maintains excellent financial health with a perfect Piotroski Score of 9, and the company holds more cash than debt on its balance sheet.
According to the firm’s analysts, while there is an expectation that Deckers will surpass its conservative fourth-quarter guidance, the margin of outperformance is unlikely to match the prior year’s results. Last year, Deckers exceeded expectations by more than double the implied fourth-quarter guide. Despite the anticipated beat, the analysts predict that any guidance provided for the fiscal year 2026 could fall short of the sell-side consensus. This conservative outlook is attributed to factors such as moderating growth at the company’s Hoka brand, a return to normal markdown levels, and the impact of tariffs. Still, InvestingPro data shows impressive revenue growth of 19.5% over the last twelve months, with five analysts recently revising their earnings estimates upward.
The firm has adjusted its earnings per share (EPS) forecast for Deckers, raising its fourth-quarter 2025 and full-year 2025 estimates to $0.57 and $5.90, up from $0.45 and $5.78, respectively. However, the EPS forecasts for fiscal years 2026 and 2027 have been lowered to $5.90 and $6.55 from the previous estimates of $6.29 and $7.04.
The revised 12-month price target of $150 reflects a significant decrease from the prior target of $246. This new target has been set in light of the factors discussed, including the expected conservative guidance from Deckers’ management and the various challenges facing the company in the coming fiscal year. Deckers Outdoor is set to report its fourth-quarter earnings tomorrow, after the market close, providing investors with more detailed insights into the company’s performance and outlook.
In other recent news, Deckers Outdoor Corporation has experienced a series of updates regarding its stock ratings and price targets. TD Cowen raised its price target for Deckers Outdoor to $175, maintaining a Buy rating, citing strong performance and future expectations for the HOKA and UGG brands. UBS also increased its price target to $158, while keeping a Buy rating, highlighting the robust sales momentum of the HOKA brand. Conversely, Piper Sandler significantly reduced its price target to $100 from $210, maintaining a Neutral rating due to anticipated slower growth and margin pressures. Piper Sandler’s revised earnings forecast for fiscal year 2026 is $5.65 per share, reflecting a more conservative outlook.
Raymond (NSE:RYMD) James upgraded Deckers to a Strong Buy, with a new price target of $150, suggesting that the stock has been oversold and emphasizing the potential for the HOKA brand to become a multi-billion dollar entity. Despite challenges such as tariff impacts and a decline in U.S. market growth, analysts remain optimistic about Deckers’ long-term prospects. The upcoming financial report for the fourth fiscal quarter of 2025 is expected to be released on May 22, with analysts projecting a cautious outlook from Deckers’ management. Investors are closely monitoring these developments, particularly the anticipated growth trajectory of the HOKA brand, which is a key driver of the company’s revenue growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.