Piper Jaffray is Willing to Walk a Mile in Deckers Outdoor's Shoes; Reiterates Overweight Rating
In a research note dated February 24, 2014, Piper Jaffray reiterated its Overweight rating of Decker Outdoor (NASDAQ: DECK) and maintained a $96 price target.
Piper Jaffray analyst, Erinn Murphy outlined three "unique" points that are believed to separate Decker from the competition and enable it to weather the pressure from domestic consumer uncertainty.
- Significant cost of goods sold recovery, believed to extend through 2015
- International growth platform, 30 percent of sales are outside the United States
- Lean inventory and solid book order for Fall 2014
Looking to fiscal year 2014, Murphy had this to say, "As it relates to fiscal year 2014 guidance, we would look for low double-digit sales growth and 12-15 percent EPS growth for fiscal year 2014--a conservative starting point in our view."
At last check, Decker shares were trading approximately even, up a tenth of a percent, at $84.32.
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