On Thursday, Wedbush maintained a positive view on Deckers Outdoor Corporation (NYSE: NYSE:DECK), reiterating an Outperform rating and a $1,030.00 price target for the shares.
The firm sees the recent decline in Deckers' share price, which has fallen over 20% since reaching an all-time high in early June, as a potential buying opportunity. The analyst believes that Deckers, known for its Hoka and UGG brands, remains a well-managed company with high brand appeal.
The assessment notes that while UGG is currently in its seasonal low period, accounting for less than 10% of the brand's annual revenue in fiscal Q1, the focus in the near term will likely be on the Hoka brand.
Despite the seasonal lull for UGG, the analyst expects the brand to perform well in the higher-volume periods, citing strong demand that outpaced supply in the Fall/Winter of 2023.
In terms of financial forecasts, the analyst suggests that while Q1 is often the smallest quarter for raising EPS guidance, the company's performance could still see an upward bias.
The firm anticipates that Deckers' stock reaction will be influenced more by management's commentary on the core brands rather than significant changes to estimates. The analyst remains bullish on the company's outlook.
Additionally, the firm has slightly adjusted the quarterly earnings forecast, increasing the Q1 EPS estimate to $3.39 from the previous $3.15. This adjustment is attributed to an overestimation of Q1 SG&A expenses in the prior model. Despite this tweak, the firm's full-year EPS estimates for Deckers remain unchanged.
In other recent news, Deckers Outdoor Corporation has been the subject of several analyst upgrades. KeyBanc raised its price target for Deckers Outdoor shares to $1,015, citing impressive fourth-quarter results and a projected revenue growth of 10% for fiscal year 2025. Baird also increased its price target for Deckers Outdoor to $1,050 after the company's earnings per share significantly exceeded consensus estimates.
Truist Securities raised its price target on Deckers Outdoor shares to $1,011, following the company's strong financial performance, driven by the UGG and HOKA brands.
Williams Trading increased its price target for Deckers Outdoor to $1,130, highlighting the company's effective brand and investor expectation management. Lastly, Stifel maintained its Hold rating on Deckers Outdoor but raised the company's price target to $825 after a strong performance in the fourth fiscal quarter.
These are recent developments that reflect the analysts' outlook on Deckers Outdoor's financial health and business strategy. They anticipate the company's continued success and growth, with a particular focus on the UGG and HOKA brands' performance. While the analysts have expressed confidence in Deckers Outdoor's strategy and financial performance, they also remind investors to consider potential risks and future market conditions.
InvestingPro Insights
In light of Wedbush's positive stance on Deckers Outdoor Corporation (NYSE: DECK), recent data from InvestingPro underpins the company's robust financial position and growth prospects. Deckers holds a compelling market capitalization of $22.43 billion and maintains a healthy P/E ratio of 30.32, which is considered low relative to its near-term earnings growth. This aligns with the analyst's view that the company's stock price drop presents a buying opportunity.
InvestingPro Tips highlight that Deckers is trading at a high Price / Book multiple of 10.79, suggesting a strong market belief in the company's asset value and future growth potential. Additionally, the company's revenue growth is impressive, with an 18.21% increase over the last twelve months as of Q4 2023. This revenue growth is further bolstered by a quarterly increase of 21.25% in Q4 2023, indicating the company's ability to continue expanding its market presence, especially with its Hoka and UGG brands.
For readers interested in a deeper analysis, InvestingPro offers additional tips and metrics. There are 14 more InvestingPro Tips available, which can provide further guidance on Deckers' financial health and investment potential. To access these insights and enhance your investment strategy, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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