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Optimistic Buy Rating for Deckers Outdoor Amid Strong UGG Sales and Favorable Risk/Reward Scenario

Optimistic Buy Rating for Deckers Outdoor Amid Strong UGG Sales and Favorable Risk/Reward Scenario

Citi analyst Paul Lejuez has maintained their bullish stance on DECK stock, giving a Buy rating yesterday.

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Paul Lejuez has given his Buy rating due to a combination of factors, including the anticipation of Deckers Outdoor’s strong performance in the upcoming quarter. He expects the company to exceed earnings per share estimates, driven by robust sales of UGG products and improved gross margins. Although there are concerns regarding Hoka’s direct-to-consumer performance due to product transition disruptions, Lejuez still anticipates a modest increase in total Hoka sales, supported by strong wholesale demand for new products.
Despite potential risks such as Vietnam tariffs, Lejuez views the risk/reward scenario as favorable. He has raised his earnings estimates for the first quarter, reflecting confidence in the company’s ability to navigate these challenges. Furthermore, he maintains his price target, suggesting a significant potential return on investment, which reinforces his positive outlook on Deckers Outdoor’s stock.

According to TipRanks, Lejuez is a 5-star analyst with an average return of 9.9% and a 57.61% success rate. Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Deckers Outdoor, Steven Madden, and Dick’s Sporting Goods.

In another report released yesterday, Williams Trading also maintained a Buy rating on the stock with a $129.00 price target.

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