Piper Sandler maintains Neutral rating on Deckers stock amid HOKA concerns

Published 22/07/2025, 15:22
Piper Sandler maintains Neutral rating on Deckers stock amid HOKA concerns

Investing.com - Piper Sandler maintained its Neutral rating and $100.00 price target on Deckers Outdoor (NYSE:DECK) in a research note released Tuesday. According to InvestingPro data, DECK currently trades at $104.80, with a PEG ratio of 0.54, suggesting potential undervaluation relative to its growth prospects.

The firm noted that Deckers stock has been lagging, with short interest levels rising and the number of shares short more than doubling year-to-date, suggesting buy-side expectations for the HOKA brand are below those of sell-side analysts.

For the first quarter of fiscal 2026, Piper Sandler expects total HOKA sales to align with company guidance for "at least double digits" growth, though it emphasized that the composition of that growth will be closely scrutinized, particularly U.S. direct-to-consumer (DTC) performance.

The research firm lowered its fiscal year 2026 sales growth forecast to 6%, below the Street’s 8% estimate, citing expectations for softer HOKA DTC performance, now modeling flat growth for Q1 and 3% growth for Q2.

Piper Sandler suggested HOKA appears to be constrained by its total addressable market, with meaningful innovation in Lifestyle and Training categories not expected until Spring/Summer 2026, while the competitive landscape remains challenging, including a potential Nike (NYSE:NKE) comeback.

In other recent news, Deckers Outdoor has seen a series of analyst actions affecting its stock outlook. Raymond (NSE:RYMD) James lowered its price target to $123 from $140, while maintaining a Strong Buy rating, due to revised tariff assumptions impacting earnings projections. Wells Fargo (NYSE:WFC) also adjusted its price target to $90 from $100, citing competitive pressures on Deckers’ Hoka brand from Nike’s focus on performance running. Evercore ISI removed Deckers from its TAP Outperform List, maintaining an In Line rating with a $110 price target, as concerns grow about the direct-to-consumer performance of the Hoka brand. UBS reduced its price target to $144 from $169, maintaining a Buy rating, due to investor concerns about growth trends in the Hoka brand’s U.S. direct-to-consumer channel. BofA Securities also lowered its price target to $114 from $128, keeping a Neutral rating, reflecting a slightly lower forecast for Hoka direct-to-consumer sales. These developments highlight the challenges Deckers faces in the competitive footwear market, particularly concerning its Hoka brand.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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