Deckers Outdoor (DECK – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst John Kernan from TD Cowen maintained a Buy rating on the stock and has a $175.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
John Kernan has given his Buy rating due to a combination of factors related to Deckers Outdoor’s strong performance and growth prospects. The HOKA brand, a key driver for the company, has shown impressive top-line growth and pricing power, with significant increases in the average pricing of top-selling SKUs. This momentum is supported by robust e-commerce traffic and successful product launches, such as the Bondi and Clifton lines, which have contributed to sustained digital engagement and sales growth.
Additionally, Deckers Outdoor’s management has demonstrated effective operational control, with a history of exceeding sales growth guidance and expanding market capitalization significantly since 2020. Despite some challenges, such as tariff impacts on gross margins, the company’s strong free cash flow and high return on invested capital (ROIC) underscore its financial health. The planned share buybacks further enhance shareholder value, making Deckers Outdoor an attractive investment opportunity according to Kernan’s analysis.
In another report released on May 16, Raymond James also maintained a Buy rating on the stock with a $150.00 price target.