Bank of America Securities analyst Christopher Nardone maintained a Hold rating on Deckers Outdoor today and set a price target of $122.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Christopher Nardone has given his Hold rating due to a combination of factors influencing Deckers Outdoor’s performance. On the positive side, the UGG brand shows promise with strong wholesale sales and limited competition, which could lead to favorable holiday results. However, there are concerns about the sustainability of UGG’s growth, given its significant sales increase since F19 and the potential for peak margins. The concentration in specific product lines and uncertainty in UGG’s US demand also pose risks.
Additionally, while there is potential for a positive earnings surprise in the near term, driven by strong back-to-school sales and a robust wholesale quarter, the longer-term outlook is clouded by heightened competition for the HOKA brand and uncertainties regarding its innovation pipeline. These factors, combined with the risk of declining margins and sales estimates if direct-to-consumer sales do not improve, balance the risk and reward, justifying the Hold rating.
According to TipRanks, Nardone is a 4-star analyst with an average return of 15.7% and a 60.87% success rate. Nardone covers the Consumer Cyclical sector, focusing on stocks such as Deckers Outdoor, Levi Strauss & Co, and Ralph Lauren.
In another report released on October 9, Wells Fargo also maintained a Hold rating on the stock with a $100.00 price target.