Deckers Outdoor, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Lorraine Hutchinson from Bank of America Securities reiterated a Hold rating on the stock and has a $120.00 price target.
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Lorraine Hutchinson has given his Hold rating due to a combination of factors related to both Deckers Outdoor’s recent outperformance and its evolving risk profile. She acknowledges that the company delivered a strong quarterly earnings surprise, fueled by robust demand at both the Hoka and Ugg brands, improved direct-to-consumer trends, and better-than-anticipated margins. Guidance for sales and earnings has been raised, and her earnings forecasts and price objective have been increased to reflect stronger sales momentum and brand initiatives, including product refreshes and new launches that should support growth across upcoming periods.
At the same time, Hutchinson believes the scope for further upward earnings revisions is limited as the full effect of tariffs flows through in coming quarters, pressuring margins despite selective price increases. She also anticipates higher operating expenses as management accelerates investment in long-term growth initiatives, which is expected to weigh on near‑term profitability. Taken together, while the company’s fundamentals and brand performance remain solid, these headwinds and the current valuation leave a more balanced risk‑reward profile, leading her to maintain a Neutral (Hold) stance on the stock.
Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Nike, Lululemon Athletica, and Bath & Body Works. According to TipRanks, Hutchinson has an average return of 2.1% and a 52.90% success rate on recommended stocks.