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A Wedbush analyst upgraded shares of Deckers Brands (NYSE:DECK) to Outperform from Neutral, raising the price target to $410 From $320 in a note Thursday.
The analyst also added the stock to Wedbush’s Best Ideas List.
“Amidst an extremely challenging retail environment, DECK was a standout last EPS season as one of the only companies in our coverage to actually raise guidance,” explained the analyst. “The rapidly-growing Hoka brand remains one of the most compelling, high-momentum growth stories in our space, while we’ve become more comfortable with the direction of the UGG brand.”
The analyst explained further that after growing 55% in 1Q23, they believe Hoka still has a long runway for growth. “Notably, the brand is in the early stages of distributing to national sporting goods retailers (e.g. DKS and FL), and as they’ve entered these doors and layered on more brand marketing, we’ve seen an acceleration of online search trends for the brand,” he added.
Wedbush feels that the combination of top-line growth, strong margins, and a fortress balance sheet means the “high-quality name” is poised to continue outperforming.
