Gold prices add to record high amid fiscal, tariff concerns
Investing.com -- Raymond James upgraded Deckers Outdoor Corporation (NYSE:DECK) to Strong Buy from Outperform saying the recent selloff has created a compelling entry point ahead of what it expects will be fourth-quarter earnings beat and steady guidance for fiscal 2026.
The firm set a $150 price target, implying a more than 40% upside from current levels. Shares of the company was trading down 6% at $106 on Thursday trading.
Deckers shares have fallen 48% since late January amid concerns over slowing growth and tariff exposure, which Raymond (NSE:RYMD) James said are largely priced in.
We like the risk/reward given the low bar, potential for F4Q results to beat, and the likelihood that FY26 guidance will be set in line with buyside expectations, analysts wrote.
While noting a deceleration in HOKA and moderation in UGG, the analysts emphasized both brands still have long-term growth runways.
The firm sees HOKA evolving into a multi-billion-dollar brand and UGG scaling globally with year-round appeal.
Deckers' strong balance sheet, free cash flow, and active buyback program provide further support.
Raymond James also flagged tariff risk as a key overhang, estimating a 28% increase in product costs for Deckers if current scenarios materialize.
Still, it said the company’s premium positioning and pricing power should help it weather macro headwinds better than most peers.
Raymond James expects F4Q EPS of $0.59, 2 cents better than what Street expects, on 6% revenue growth, and believes recent margin pressure is temporary.
The firm noted DECK’s valuation, 13x its FY27 EPS estimate, is well below historical averages, and its sum-of-the-parts analysis supports the new price target.
For Softlines and Digital Commerce sector RJ sees tariffs as the dominant theme but expects limited commentary from management due to ongoing policy uncertainty.