UPDATE: ISI Group Reiterates Deckers Outdoor's Buy Rating and Raises PT on Revised EPS Estimates

In a report published Friday, ISI Group reiterated Deckers Outdoor's DECK Buy rating and sees light emerging at end of tunnel. ISI Group reported that, “While 4Q was a mixed bag (16¢ beat driven by SG&A and share buybacks), key barometers of UGG's health and relevance (flattish U.S. comps despite warm weather, accelerating sales as weather cooled) indicate the brand is st I is in I ill very much alive despite recent struggles. And management appears to be approaching 2013 with reinvigorated tenacity, announcing several potentially significant new strategies, including UGG Pure (a new lower-cost material made from pure wool to help mitigate sheepskin inflation and broaden UGG's pricing capabilities) supply chain investments to shorten lead times and add more product newness and a more expansive outlet push While DECK's recovery will likely be more U-shaped than V-shaped, we think management's proactive response to the shifting competitive, costing, and consumer landscape should better position the company for sustainable sales and earnings growth in an environment where the popularity of classic UGG product may be past its peak. We are raising our price target to $45, reflecting 12.5x our new 2013 EPS estimate of $3.60 (down from $4.05)." Deckers Outdoors' shares closed at $40.41 on Thursday.