On May 20, analyst John Kernan from TD Cowen maintained a Buy rating on Deckers Outdoor Corporation (NYSE:DECK) and lifted the price target from $150 to $175.
The analyst supported the rating with the company’s strong performance and growth prospects. Kernan considers the HOKA brand a key growth driver, reporting notable pricing power and top-line growth with an increase in the average pricing of top-selling SKUs.
A customer trying on a new pair of shoes with a smile, thrilled with the fit and comfort.
Strong e-commerce traffic and successful product launches, such as the Bondi and Clifton lines, further support the analyst’s Buy rating by contributing to sustained sales growth and digital engagement.
Deckers Outdoor Corporation (NYSE:DECK) has a history of expanding market capitalization and surpassing sales growth guidance since 2020, supported by its management’s effective operational control. While the analyst acknowledged some challenges, such as the impact of tariffs on gross margins, the overall outlook for the company remains positive, supported by its high return on invested capital (ROIC) and strong free cash flow.
As per the analyst, the planned share buybacks further make Deckers Outdoor Corporation (NYSE:DECK) a compelling investment, supporting the optimistic outlook.
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