In a report released today, Ike Boruchow from Wells Fargo maintained a Hold rating on Deckers Outdoor, with a price target of $90.00.
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Ike Boruchow has given his Hold rating due to a combination of factors impacting Deckers Outdoor’s performance. One significant concern is the competitive pressure from Nike’s renewed focus on performance running, which has affected the momentum of Deckers’ Hoka brand. This increased competition has led to larger and longer-than-expected challenges in the U.S. direct-to-consumer market.
Additionally, there are concerns about the clearance timeline for older models like Clifton 9 and Bondi 8, which have not progressed as anticipated. The potential impact of increased tariffs from Vietnam, a major sourcing location for Deckers, also poses a risk to the company’s margins. Given these challenges, Boruchow has adjusted revenue and earnings expectations downward, reflecting a cautious outlook for Deckers’ future performance.
Boruchow covers the Consumer Cyclical sector, focusing on stocks such as Bath & Body Works, Victoria’s Secret, and Levi Strauss & Co. According to TipRanks, Boruchow has an average return of 6.2% and a 48.59% success rate on recommended stocks.
In another report released on July 17, Bank of America Securities also maintained a Hold rating on the stock with a $114.00 price target.