Truist cuts Deckers stock price target to $130, maintains Buy

Saturday, May 24, 2025, shares of Deckers Outdoor (NYSE: NYSE:DECK) experienced a notable decline following a price target reduction by Truist Securities. Analyst Joseph Civello slashed the price target to $130 from the previous $225 while still maintaining a Buy rating on the stock. The company’s shares have fallen over 50% year-to-date, according to InvestingPro data, which also reveals that 14 analysts have recently revised their earnings estimates downward for the upcoming period.

Deckers Outdoor’s stock tumbled after the market closed on Friday as HOKA, one of the company’s brands, reported fourth-quarter sales that fell short of Wall Street expectations. The company’s management also refrained from providing financial guidance for the upcoming fiscal year, which fueled investor concerns about the long-term growth potential of the HOKA brand, particularly in its US direct-to-consumer business. Despite these concerns, InvestingPro data shows the company maintains strong fundamentals with a perfect Piotroski Score of 9 and a "GREAT" overall financial health rating.

Civello noted that the sharp deceleration in HOKA’s sales and the lack of forward visibility have heightened bearish sentiments. However, he also pointed out that management’s historically conservative approach to guidance, coupled with significant headwinds from both company-specific issues and broader macroeconomic uncertainty, suggests a cautious but prudent strategy.

Despite the reduction in the price target, Civello believes that the current stock price reflects the worst-case scenario and sees opportunities for Deckers to outperform throughout the year. However, he expects the stock to remain under pressure for some time, indicating a period of investor skepticism before any potential recovery.

The new price target represents a significant adjustment, reflecting the analysts’ recalibrated expectations in light of the recent developments affecting Deckers Outdoor. The company’s next steps and performance will be closely watched by investors as they assess the brand’s ability to navigate the current challenges and capitalize on future growth opportunities. According to InvestingPro analysis, the stock appears undervalued at current levels, with strong liquidity indicated by a current ratio of 3.72 and more cash than debt on its balance sheet. Get access to 12 additional exclusive ProTips and comprehensive analysis through InvestingPro’s detailed research reports.

In other recent news, Deckers Outdoor Corporation has seen varied analyst reactions following its fourth-quarter earnings report. Despite surpassing expectations in revenue and earnings, the company did not provide full-year guidance for fiscal year 2026, citing uncertainties in U.S. trade policy and tariffs. Analysts from Williams Trading, TD Cowen, and Needham have adjusted their price targets for Deckers, with Williams Trading reducing it to $129, TD Cowen to $157, and Needham to $120, all while maintaining a Buy rating. Stifel has kept a Hold rating with a price target of $127, noting concerns over the HOKA brand’s slower direct-to-consumer sales growth.

UBS stands out with an optimistic view, raising its price target to $169, citing potential earnings per share growth driven by the HOKA brand’s accelerating sales. The company announced a $2.25 billion share repurchase program, adding to an existing program for a total of $2.5 billion, reflecting confidence in its stock value. Despite mixed performance, analysts remain cautiously optimistic about Deckers’ long-term potential, highlighting initiatives to expand HOKA’s product range and distribution. The company’s conservative guidance approach and the impact of tariffs remain focal points for analysts as they assess Deckers’ future performance.

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