In a report published Monday, Credit Suisse analyst Christian Buss upgraded the rating on Deckers Outdoor Corp. DECK from Underperform to Neutral, and raised the price target from $61.00 to $82.00.
In the report, Credit Suisse noted, “Results were robust across geographies and channels, with the outlook for continued top-line and earnings growth; this suggests that recent (aggressive) investments in owned retail and international will ultimately generate higher returns than previously anticipated. When combined with a return to inventory discipline and a modest tailwind from the acquisition of Hoka One One, we now think that modest topline growth and double-digit earnings growth can be sustained. In short, our caution regarding SG&A investment was misplaced and we got this one wrong. We now believe that DECK shares warrant a multiple inline with footwear peers (15x forward earnings) which suggests a 12-month target price of $82. We upgrade shares to Neutral.”
Deckers Outdoor Corp. closed on Friday at $83.16.
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