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Investing.com - Needham has reiterated a Buy rating and $120.00 price target on Deckers Outdoor (NYSE:DECK) ahead of the company’s fiscal first-quarter 2026 earnings report scheduled for Thursday. The company demonstrates robust financial health with a perfect Piotroski Score of 9, according to InvestingPro data, and maintains more cash than debt on its balance sheet.
The firm acknowledges that Deckers stock has become more controversial than it has been in years, following market surprise at Hoka’s rapid revenue slowdown reported in May.
Needham believes Hoka’s current trends likely remained similar during the first quarter, but notes some encouraging developments including dwindling supply of discounted styles and solid wholesale demand.
These positive indicators support management’s assertion that Hoka’s issues are short-term, with the brand expected to re-accelerate in upcoming quarters, according to the research firm.
Needham expects the stock to remain "stuck in neutral" near-term as investors wait for clarity on whether Hoka’s challenges are structural or temporary, with that question likely to be resolved within the next few months.
In other recent news, Deckers Outdoor has seen several adjustments in analyst ratings and price targets, largely centered around concerns with its HOKA brand. TD Cowen lowered its price target for Deckers Outdoor to $147, citing high promotional activity for the HOKA Arahi 7 model and uncertainty around tariffs, though it maintained a Buy rating. Piper Sandler kept a Neutral rating and a $100 price target, highlighting a rise in short interest and suggesting that buy-side expectations for the HOKA brand are lower than those of sell-side analysts. Raymond (NSE:RYMD) James reduced its price target to $123 from $140, maintaining a Strong Buy rating, while adjusting revenue and earnings projections due to tariff impacts. Wells Fargo (NYSE:WFC) decreased its price target to $90, pointing to competitive pressures from Nike (NYSE:NKE)’s performance running focus, which has affected HOKA’s momentum. Furthermore, Evercore ISI removed Deckers from its TAP Outperform List, maintaining an In Line rating and a $110 price target, amid concerns about softness in the direct-to-consumer channel for HOKA. These developments reflect a cautious outlook from analysts regarding Deckers Outdoor’s near-term prospects.
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