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BTIG sees 'solid momentum' for Deckers Brands

Published 05/07/2023, 11:12 pm
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The Deckers Brands (NYSE:DECK) price target was lifted to $613 from $560 at BTIG on Wednesday, with analysts reiterating a Buy rating on the stock.

Analysts told investors that its checks showed solid momentum has continued for the company.

"Investor conversations point to a focus on the growth outlook for HOKA (39% of F'23 sales); our checks suggest strong DTC growth, continued healthy sell-throughs, building brand awareness, and plenty of unmet demand from wholesale partners (both existing and potential)," the analysts wrote.

"We continue to believe the more moderate growth outlook for the brand (guided up ~20% in F'24 vs. nearly 60% in F'23) is more a function of strategic efforts to manage distribution than the actual consumer demand for the brand."

For the company's UGG brand, which represents 53% of its sales, BTIG noted strong growth in search interest, especially internationally, which they view as key to the investment case going forward.

Analysts also stated that consensus estimates for DECK are likely conservative.

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