UPDATE: Sterne Agee Upgrades Deckers Outdoor to Neutral on Risk/Reward

Sterne Agee raised its rating on Deckers Outdoor (NASDAQ: DECK) from Underperform to Buy.

Sterne Agee noted, "The Risk/Reward at these levels lead us to upgrade the stock. The worst is not over, but we anticipate capitulation by management by 4Q12 earnings. We would not be buyers of the stock. We see material margin risk both in 4Q12 and into 2013. Lowering FY12 and FY13 EPS estimates from $3.49 and $3.62 to $3.16 and $3.31. We would like to have more confidence in the guidance but management has not yet responded to us."

Deckers Outdoor closed at $29.37 on Thursday.

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