Gold prices hit 2-week high as Trump-Fed feud escalates with Cook firing
On Monday, Piper Sandler reaffirmed its Neutral rating on Deckers Outdoor (NYSE:DECK) shares with a steady price target of $100.00. The firm’s analyst, noting the upcoming financial report for the fourth fiscal quarter of 2025, highlighted that Deckers Outdoor is scheduled to release its earnings next Thursday, May 22, after the market closes. According to InvestingPro data, the company maintains excellent financial health with a perfect Piotroski Score of 9, suggesting strong operational efficiency and financial stability. Despite a significant rally of approximately 30% since Liberation Day, Deckers stock has experienced a sharp decline of 37% year-to-date. This downturn has been accompanied by a more than twofold increase in short interest, attributed to weak third-party data and challenges arising from the transition of the company’s two largest franchises, Bondi and Clifton. InvestingPro analysis reveals the company maintains robust fundamentals with a gross profit margin of 58% and strong cash flows that adequately cover interest payments.
The analyst pointed out that the future performance of Deckers will largely hinge on the growth trajectory of its HOKA brand. Current estimates suggest that international sales could contribute nine percentage points to an anticipated 24% total brand growth for the current year, and six percentage points to a projected 10% growth in fiscal year 2026. These projections indicate a potential slowdown in the U.S. market to mid-single-digit growth rates.
Amid a challenging macroeconomic environment, the analyst expects Deckers management to adopt a more conservative outlook than usual, which could lead to a downward bias in sell-side estimates. Piper Sandler has adjusted its own fiscal year 2026 earnings forecast for Deckers to $5.65 per share. Although the buy-side market may have already tempered its expectations in anticipation of a cautious guidance, concerns about slowing growth—especially if the U.S. market decelerates further—coupled with a P/E ratio of 20.7x, have led Piper Sandler to maintain its Neutral stance on the stock. Based on InvestingPro Fair Value analysis, the stock appears fairly valued at current levels. Subscribers can access 12 additional ProTips and a comprehensive Pro Research Report for deeper insights into DECK’s financial health and growth prospects.
In other recent news, Deckers Outdoor Corporation has been the focus of several analyst updates. UBS analyst Jay Sole increased the company’s price target to $158, maintaining a Buy rating. Sole noted the strong performance of Deckers’ Hoka brand but highlighted uncertainties around tariffs that may affect future financial guidance. Piper Sandler, however, took a more conservative stance, reducing the price target to $100 and maintaining a Neutral rating due to anticipated slower growth and margin pressures.
Meanwhile, Raymond (NSE:RYMD) James upgraded Deckers’ stock rating to Strong Buy with a new price target of $150, citing a favorable risk/reward scenario despite concerns over tariffs. Evercore ISI maintained its Outperform rating with a target of $235, acknowledging potential gross margin compression but expressing confidence in the company’s ability to manage cost pressures. CFRA also upgraded Deckers to a Buy with a $168 target, pointing to the company’s solid growth trajectory and strong brand performance, particularly with HOKA and UGG, as justification for the change.
These developments reflect diverse perspectives from analysts on Deckers Outdoor’s financial health and future prospects, with a mix of optimism and caution.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.