Bernstein analyst Aneesha Sherman last night initiated coverage of Deckers Outdoor (DECK) with an Underperform rating and $100 price target Both of the company’s brands, Hoka and Ugg, are slowing, driving down sales growth and putting pressure on margins, the analyst tells investors in a research note. The firm believes that despite the stock being down 42% year-to-date, expectations remain too high. Hoka is “maxed out” in the U.S. running segment and is shifting to lower-quality growth while Ugg is coming out of a multi-year trend cycle and brand transformation, contends Bernstein.
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