Deckers Outdoor, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Jay Sole from UBS maintained a Buy rating on the stock and has a $158.00 price target.
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Jay Sole has given his Buy rating due to a combination of factors indicating that Deckers Outdoor is currently undervalued and poised for growth. He anticipates a positive surprise in DECK’s earnings per share in the upcoming quarters, driven by robust sales growth from both the HOKA and UGG brands. This growth potential is expected to elevate DECK’s price-to-earnings ratio from 15x to over 20x, which would significantly enhance its market valuation.
Furthermore, Jay Sole’s confidence is bolstered by insights from meetings with Hoka’s management, highlighting the brand’s strategic focus on innovation and controlled growth. Hoka’s plans to launch updated styles and expand into lifestyle categories, along with improvements in design processes, suggest a strong trajectory in key market segments. This strategic direction, coupled with tight control over distribution and inventory, is likely to maintain Hoka’s brand strength and pricing power, further supporting the Buy rating.
According to TipRanks, Sole is a 4-star analyst with an average return of 6.2% and a 51.73% success rate. Sole covers the Consumer Cyclical sector, focusing on stocks such as Deckers Outdoor, Macy’s, and Nike.
In another report released on September 20, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $126.00 price target.