Deckers Outdoor upgraded to Buy from Neutral at Citi

Citi upgraded Deckers Outdoor (DECK) to Buy from Neutral with an unchanged price target of $215. The analyst believes the 24% selloff in shares post the Q3 report is unwarranted, and largely driven by fears of slowing Hoka growth, which it views as overblown. Slower expected sales in Hoka’s wholesale business in Q4 is a function of selling into fewer wholesale doors versus last year, as well as the timing of sell-in, the analyst tells investors in a research note. Citi believes underlying demand remains strong. With two years of “strong” double-digit growth at Ugg, the brand’s momentum and dominance in comfort footwear gives Citi confidence the brand can grow at least mid-single-digit in fiscal 2026 and beyond, the analyst adds.