Cannacord Puts Some New Shoes On; Raised Estimates on Deckers
In a report published Thursday, Canaccord Genuity analyst Camilo Lyon reiterated a Buy rating on Deckers Outdoor (NASDAQ: DECK) and raised the price target from $91.00 to $111.00.
Lyon noted that a positive 2013 holiday season has given retailers a renewed confidence in winter boots which should aid in strong 2014 orders. The analyst commented that Deckers is making progress on its structural gross margin expansion plan as retail and UGG Pure penetration should increase through 2015.
Canaccord reassessed wholesale growth estimates from -1% to +6% in 2014. The analyst reported that this estimate may prove conservative given a turn in Europe and improving assortment in Asia. Lyon added, "While we expect Q4 results to produce a solid beat, we are not anticipating a pre-announcement at ICR since it is not customary practice (the last preannouncement was in 2008). That said, we expect positive commentary by management to be well received."
Deckers closed at $85.90 on Wednesday and shares have traded as high as $88.88 today, up 3.469%.
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