NVIDIA launches Jetson Thor robotics computers for physical AI systems
On Friday, Evercore ISI analysts adjusted their stance on Deckers Outdoor Corporation (NYSE: NYSE:DECK), downgrading the company’s stock from Outperform to In Line, significantly reducing the price target to $110 from the previous $235. The downgrade reflects concerns about the company’s growth prospects, particularly for its key brands, UGG and HOKA.
The analysts at Evercore ISI pointed to signs of deceleration in the company’s two main brand growth engines, which had previously been driving its strong momentum and margin expansion. They noted that while Deckers Outdoor had been a well-regarded story in the market, the firm might now be facing a period of a lower growth profile. However, current data from InvestingPro reveals the company still maintains impressive revenue growth of 19.52% and holds more cash than debt on its balance sheet. Discover 11 more exclusive ProTips and comprehensive analysis in the Pro Research Report.
The downgrade comes amidst a backdrop of increasing external pressures, including tariffs and weaker consumer sentiment, which the analysts believe could impact Deckers Outdoor’s performance. They compared the company’s outlook with that of peers like ONON, which continues to guide to high 20s growth excluding foreign exchange influences for the year.
Evercore ISI acknowledged the timing of their downgrade, stating they were late in adjusting their call. However, they emphasized the lack of near-term catalysts that could drive outperformance for Deckers Outdoor. The analysts concluded that the current valuations now adequately reflect the risks that are emerging for the company.
The firm’s new outlook suggests a more cautious approach, preferring to remain on the sidelines until there are more positive signals that could indicate a potential for outperformance in the future. The revised price target of $110 represents a significant decrease from the previous target, indicating a recalibration of expectations for Deckers Outdoor’s stock value. Based on current InvestingPro Fair Value calculations, the stock appears fairly valued, trading at a P/E ratio of 20.4 with strong liquidity metrics, including a current ratio of 3.17.
In other recent news, Deckers Outdoor Corporation reported a strong performance for the fourth quarter of 2025, with earnings per share (EPS) reaching $1, significantly surpassing the forecast of $0.59. The company achieved a revenue of $1.02 billion for the quarter, slightly above the expected $1.01 billion, and a full fiscal year revenue of $4.986 billion, marking a 16% year-over-year increase. Despite these positive earnings results, the company’s stock saw a decline in aftermarket trading. Deckers ended the fiscal year with $1.9 billion in cash and completed share repurchases worth $567 million. The company is expanding its international footprint, particularly focusing on the HOKA brand, which saw a 24% increase in global revenue, reaching $2.2 billion. Analysts have noted the company’s cautious outlook for fiscal 2026, considering potential challenges such as a $150 million tariff impact. Additionally, Deckers has been strategically expanding its wholesale distribution, which has contributed to its growth in various markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.