On Thursday, Evercore ISI revised its price target for shares of Deckers Outdoor (NYSE: NYSE:DECK), adjusting the figure to $183.00 from the pre-split level of $1,100.00. Despite the reduction, the firm maintains an Outperform rating on the stock. This adjustment comes in the wake of Deckers Outdoor's recent 6-to-1 stock split, which was announced on September 13, 2024, and took effect after the market closed on September 16, 2024.
According to Evercore ISI, the new price target reflects the stock's split-adjusted value. The split resulted in shareholders receiving five additional shares for every share they held, effectively increasing the number of shares owned while reducing the price per share to one-sixth of its pre-split value. Deckers Outdoor commenced trading on a split-adjusted basis on Tuesday, September 17, 2024.
The stock split did not change the company's overall market capitalization, but it did increase the number of shares outstanding, making the stock more accessible to a broader range of investors. The move is often perceived as a sign of confidence by a company's management in its future prospects and is intended to improve liquidity in the trading of its shares.
Deckers Outdoor's decision to split its stock follows a common practice among companies that have seen significant appreciation in their share price. Splits can often lead to increased interest in a stock, especially from smaller investors who may find the lower post-split price more attractive.
The price target provided by Evercore ISI is an indicator of the firm's expectations of the stock's future performance. While the target has been significantly lowered to accommodate the split, the Outperform rating suggests that the firm still sees positive potential in Deckers Outdoor's stock.
In other recent news, On Holding AG has seen a price target increase from Piper Sandler, reflecting confidence in the company's robust sales growth and anticipated significant earnings power by 2026. In contrast, Deckers Outdoor Corp . has been the focus of several analysts.
The company reported a 22% increase in Q1 FY2025 revenues, largely driven by a 30% rise in revenue from the HOKA brand and a 14% increase from the UGG brand. This led to an upward revision of Deckers' annual profit forecast.
Deckers also underwent a 6-for-1 stock split, endorsed by analysts from Williams Trading and TD Cowen, who adjusted their price targets to reflect the new valuation. UBS reiterated its Buy rating on Deckers, maintaining a price target of $225.00, with the rapid growth of HOKA cited as a key contributor to future sales and earnings. TD Cowen also maintained its buy rating on Deckers' shares, with a steady price target of $176.00, underscoring the strong performance of HOKA.
BofA Securities kept a neutral stance on Deckers' shares, keeping the price target at $170.00, highlighting a positive outlook on the growth potential for HOKA. Meanwhile, investment firms Baird, Truist Securities, and TD Cowen raised their price targets for Deckers, signaling a positive outlook.
As Deckers continues to experience significant growth and strategic changes, Stefano Caroti is set to take over as the new CEO.
InvestingPro Insights
To complement the analysis of Deckers Outdoor's (NYSE: DECK) recent stock split and Evercore ISI's adjusted price target, let's delve into some key financial metrics and insights provided by InvestingPro.
Deckers Outdoor's strong financial position is evident from its market capitalization of $23.99 billion and impressive revenue growth. The company reported a revenue of $4.44 billion in the last twelve months, with a notable growth rate of 20.3%. This robust top-line performance aligns with the company's confidence in implementing a stock split, which often signals management's positive outlook.
InvestingPro Tips highlight that Deckers holds more cash than debt on its balance sheet, indicating a solid financial foundation. This strong liquidity position is further reinforced by the fact that the company's liquid assets exceed its short-term obligations. These factors contribute to the firm's financial stability and ability to navigate market challenges.
The stock's performance has been remarkable, with InvestingPro data showing a one-year price total return of 86.17%. This substantial appreciation likely contributed to the decision to split the stock, making it more accessible to a broader investor base.
For investors seeking a deeper understanding of Deckers Outdoor's financial health and growth prospects, InvestingPro offers 12 additional tips, providing a comprehensive view of the company's potential. These insights can be particularly valuable in assessing the stock's trajectory following the split and in light of Evercore ISI's maintained Outperform rating.
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