Sterne Agee Raises EPS Estimates on Deckers Outdoor

A report from Sterne Agee reiterates its Buy rating and $130 price target, and raises its FY '11 and '12 estimates to $5.30 and $6.47 on Deckers Outdoor (NASDAQ: DECK).

The report states, “Raising FY12 non GAAP EPS forecast from $5.05 to $5.30 but believe there's more to come. We are raising our 4Q sales number from $527M to $562M, a 30% increase over LY. We believe there is significant upside to both our sales and EPS estimates due to the continuing acceleration of the domestic wholesale business despite warmer weather than 3Q10, which highlights the power of the broader UGG product mix, the acceptance of increased prices (+~10%), easier SSS comparisons and a 63% increase in the retail store base."

DECK closed yesterday at $106.18.