Needham analyst Tom Nikic has maintained their bullish stance on DECK stock, giving a Buy rating yesterday.
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Tom Nikic has given his Buy rating due to a combination of factors that reflect both challenges and opportunities for Deckers Outdoor. Despite concerns about the UGG brand’s declining direct-to-consumer trends, which have negatively impacted investor sentiment, the Hoka brand shows promising signs of growth. Hoka’s accelerating direct-to-consumer trends and strong wholesale order books contribute positively to the company’s outlook.
Moreover, Deckers Outdoor’s recent financial performance exceeded expectations, with revenue growth surpassing guidance and earnings per share significantly higher than anticipated. These financial results, coupled with the introduction of favorable fiscal year guidance, support the Buy rating. While there are concerns regarding the UGG brand’s future performance, the overall positive trajectory of Hoka and the company’s robust financials underpin Tom Nikic’s optimistic stance.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $124.00 price target.