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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
Jan 2015CitigroupMaintainsBuy
Jan 2015WunderlichMaintainsBuy
Jan 2015JefferiesMaintainsBuy

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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