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On Wednesday, UBS analyst Jay Sole increased the price target for Deckers Outdoor (NYSE:DECK) shares to $158 from the previous $150, while maintaining a Buy rating on the stock. The company, which boasts a perfect Piotroski Score of 9 according to InvestingPro data, has demonstrated robust financial health with a "GREAT" overall rating. Sole’s revision comes amidst discussions about the performance of Deckers’ Hoka brand and the overall sales momentum of the company.
Sole noted that there is considerable interest in the true extent of the Hoka brand’s sales momentum. Supporting this interest, InvestingPro data shows impressive revenue growth of 19.52% over the last twelve months. He expressed his belief that the brand’s performance is stronger than market expectations. Despite this optimism, the analyst anticipates that Deckers will not provide financial guidance for fiscal year 2026 during their fourth-quarter report, primarily due to uncertainties surrounding tariffs.
The market is also not expecting Deckers to issue earnings per share (EPS) guidance for FY26. According to Sole, the upcoming quarterly report is unlikely to significantly shift market sentiment or analysts’ EPS estimates for Deckers. He predicts that the reaction to the report will be relatively neutral, with potential outcomes being balanced in terms of upside and downside risks.
Sole mentioned that the options market has factored in a potential 7.1% movement in Deckers’ stock price in response to the quarterly report, expected on May 22. This figure is closely aligned with the historical average move of 7.2%. He also highlighted that there could be a wide range of volatility outcomes following the report, reflecting the market’s uncertainty. With the stock currently trading near its InvestingPro Fair Value, investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Deckers Outdoor has been the focus of several analyst updates and projections. CFRA upgraded the company’s stock rating from Sell to Buy, setting a price target of $168, citing strong growth in HOKA and UGG brands as justification. Similarly, Citi maintained its Buy rating with a $215 target, highlighting optimism from Deckers’ management regarding demand for their brands. Evercore ISI reiterated its Outperform rating, noting potential gross margin compression and a decline in earnings per share if prices remain unchanged, yet maintaining a positive outlook. Raymond (NSE:RYMD) James upgraded Deckers to Strong Buy with a $150 target, pointing out that the stock has been oversold and emphasizing the potential for HOKA to become a multi-billion dollar brand.
Meanwhile, Piper Sandler reduced its price target to $100, maintaining a Neutral rating, and projecting a slowdown in growth contrary to broader market expectations. Despite these varied assessments, Deckers Outdoor’s financial health remains strong, with a $2.2 billion cash reserve and no debt, as noted by CFRA. The company has also initiated share repurchases, which could enhance shareholder value. These recent developments reflect a mixed but generally optimistic outlook on Deckers Outdoor, with analysts expressing confidence in its long-term brand strength and market positioning.
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