Deckers Brands (DECK) was downgraded to Neutral from Overweight at Piper Sandler on Thursday, with the firm's analysts maintaining a $650 price target on the stock.
The analysts told investors that their previous Overweight thesis has now been realized, with its valuation reflecting its earnings growth, now looking fair.
"DECK has increased +75% since 10/25/22 compared to the S&P at 18%. Our thesis, which included continued HOKA momentum, near-term UGG tailwinds, and attractive valuation given the SoP, has largely played out," explained the analysts.
"HOKA has quickly reached the #1 brand within run specialty, and without a complete 'lifestyle' offering, we think market share gains are more limited from here," they added.
The analysts also noted that the renewed brand heat at UGG also seems well-known at this point, given its outperformance in F2Q.