Ike Boruchow, an analyst from Wells Fargo, maintained the Hold rating on Deckers Outdoor (DECK – Research Report). The associated price target was lowered to $100.00.
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Ike Boruchow has given his Hold rating due to a combination of factors affecting Deckers Outdoor’s current market position. Despite the company showing healthy business fundamentals, the recent slowdown in Hoka’s revenue, particularly in the direct-to-consumer (DTC) segment, has raised concerns. The unexpected miss in Hoka’s revenue, coupled with a negative trajectory in the US DTC market, has created a challenging environment for the stock.
Additionally, the company’s margins, which have been over-performing, are now under pressure due to various factors including tariffs and promotional activities. Management’s expectation of a $150 million unmitigated tariff impact further complicates the outlook. While international and wholesale segments are expected to drive growth, the uncertainty surrounding gross margin pressures and the Hoka brand’s performance contribute to the Hold rating, as these dynamics make the stock’s valuation less attractive in the near term.
Boruchow covers the Consumer Cyclical sector, focusing on stocks such as Ross Stores, Signet Jewelers, and VF. According to TipRanks, Boruchow has an average return of 5.1% and a 48.59% success rate on recommended stocks.
In another report released today, Telsey Advisory also downgraded the stock to a Hold with a $120.00 price target.