Deckers Outdoor, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Sam Poser from Williams Trading maintained a Buy rating on the stock and has a $129.00 price target.
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Sam Poser has given his Buy rating due to a combination of factors including the strong performance and outlook for Deckers Outdoor’s UGG brand and the resilience of HOKA sales despite some execution issues. The UGG brand continues to be in high demand, with retailers eager for more product allocations and showing no signs of reducing orders. Meanwhile, although HOKA faced challenges with the Bondi and Clifton updates, the brand’s sales remain robust, and future product transitions are expected to be better managed.
Despite potential negative impacts from increased tariffs on Vietnamese goods, Deckers Outdoor is expected to mitigate some of these effects through strategic pricing and negotiations with factory partners. The company’s scarcity model for both UGG and HOKA is anticipated to sustain strong sales trends. Although the tariffs present a margin headwind, management’s efforts to address these challenges are expected to partially offset the impact, supporting the Buy rating.