On Thursday, Truist Securities showed confidence in Deckers Outdoor Corporation (NYSE: NYSE:DECK), raising the price target for the company's shares to $235 from $230, while maintaining a Buy rating. The adjustment reflects positive data indicating continued strong demand for the company's UGG and HOKA brands.
According to InvestingPro data, DECK has demonstrated remarkable performance with a 69% return over the past year and is currently trading near its 52-week high of $214.7.
Analysts at Truist Securities have been closely monitoring Deckers Outdoor's performance and have identified robust momentum for both UGG and HOKA brands. Their analysis included a review of Truist Card Data, TikTok trends, and wholesale sellouts, all of which suggest a growing consumer interest in these products.
This momentum is reflected in the company's impressive 19.25% revenue growth and strong gross margin of 57.11%. InvestingPro subscribers can access 14 additional key insights about DECK's financial health and growth prospects through the comprehensive Pro Research Report.
The recent launch of the HOKA Bondi 9 shoe is expected to further accelerate the brand's momentum. This highly anticipated release is seen as a catalyst that could potentially boost the brand's visibility and sales.
On the UGG front, the introduction of new product lines such as the Lowmel sneaker is believed to be expanding the brand's Total (EPA:TTEF) Addressable Market (TAM) and enhancing its year-round appeal. Meanwhile, UGG's core products continue to experience high demand, indicating a solid position in the market.
Truist's revised price target to $235 from $230 comes as a direct result of these observed trends and the firm's expectation of continued upside due to strong demand for Deckers Outdoor's key brands.
In other recent news, Deckers Outdoor Corporation has been the subject of several analyst revisions. Needham raised its price target on Deckers to $246, citing the company's consistent performance and strong brand momentum. The firm also increased its earnings per share forecasts for fiscal years 2025 through 2027. UBS also reiterated a Buy rating for Deckers, with an emphasis on the growth potential of the company's Hoka brand, which is expected to deliver a 21% five-year compound annual growth rate in sales.
Baird reiterated an Outperform rating on Deckers, highlighting the company's growth and return on invested capital as sustainable features. Truist Securities revised its price target for Deckers from $205 to $230, maintaining a Buy rating. The revision was influenced by the performance of Deckers' Hoka and UGG brands, with Hoka expected to introduce significant product upgrades in early 2025.
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