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Deckers' Growth 'Entering Less Volatile Phase,' Upgraded by Buckingham

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Analyst Scott Krasik believes Deckers (NASDAQ: DECK) is “entering a less volatile phase in its growth marked by new products, gross margin expansion, a timeline to expense leverage, and a formal plan to drive shareholder returns.”

The $92 price target “assumes shares trade at 16.5x our FY2 EPS estimate,” said the analyst. Krasik believes “a mid-teens multiple is appropriate in light of DECK's global growth prospects, margin expansion potential, and the possible introduction of a shareholder-friendly capital allocation plan later this year.”

Deckers' move to shift to shift UGG to a wider range of price points will lead “to less reliance on 4Q to drive annual results.”

Shares of Deckers are down 0.57 percent to $79.62 in Thursday's trading.

Latest Ratings for DECK

DateFirmActionFromTo
Apr 2015Guggenheim SecuritiesInitiates Coverage onNeutral
Apr 2015Bank of AmericaInitiates Coverage onBuy
Mar 2015Standpoint ResearchUpgradesHoldBuy

View More Analyst Ratings for DECK
View the Latest Analyst Ratings

Posted-In: Buckingham Research Scott KrasikAnalyst Color Upgrades Price Target Analyst Ratings

 

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