Analyst Paul Lejuez from Citi maintained a Buy rating on Deckers Outdoor and keeping the price target at $150.00.
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Paul Lejuez has given his Buy rating due to a combination of factors including expectations of a strong second-quarter earnings performance driven by robust sales of Hoka and UGG products. The analyst anticipates that the company’s management will express confidence in achieving mid-teens growth for Hoka this year, despite potential delays in UGG demand due to warmer temperatures. Additionally, Lejuez expects management to guide third-quarter sales positively, supported by moderate growth in UGG and significant growth in Hoka, even though gross margins might be impacted by tariffs.
Lejuez also highlights the improved trends in Hoka and the favorable risk/reward profile given the current trading multiples. The analyst maintains a price target of $150, implying a future price-to-earnings ratio of approximately 25 times, which is significantly higher than the current multiple. Despite some concerns about UGG’s performance due to seasonal factors, the overall sentiment around Hoka’s long-term growth prospects remains optimistic, contributing to the Buy rating.
In another report released on September 29, UBS also reiterated a Buy rating on the stock with a $158.00 price target.