Analysts Favor Deckers Outdoor Going In To Year's End - Nordstrom (NYSE:JWN), Deckers Outdoor (NYSE:DECK)

Shares of Deckers Outdoor DECK continue to surge in Monday afternoon's trading session. Shares were trading higher by five percent while hitting a new 52-week high of $73.03 following the release of a positive research note from analysts at Jefferies.

The analysts team consisted of Randal Konik, Edward Plank and Isabel Keller. The team has placed a $100 price target by year's end and offers ten reasons to support their valuation.

1. Consumers are in the market to replace and buy new UGGs and winter jackets as snow forecasts began to surface.

2. Traffic patterns at stores are strong with the company's products resonating with consumers.

3. Bloomingdales and Nordstrom JWN continue to promote the popular UGGs boots both in store and online.

4. Traditionally, the stock has outperformed its peers in the fourth quarter as the holiday shopping season gives a boost to the company's sales.

5. The company will continue to benefit from lower sheep costs and improving Europe trends.

6. Gross margin should improve as the company's inventory is “clean on the balance sheet and in the channel.”

7. UGG Pure should help lift margins and enhance new product styles.

8. Short interest is at 33 percent of float and that “shorts are going to get run over.”

9. The company should achieve a $6 EPS in 2014, indicating shares being undervalued at current prices.

10. Oprah Winfrey has included the company's Genevieve boots in her Holiday list of “Favorite Things.”

The research note explains the analysts $100 price target is based on a 17x 2014 EPS and 11x EV/EBITDA. Also in the company's favor is a discount to historical trading levels. The analysts also note potential risks in the forms of cost inflation, weather and fashion trends.

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