On Thursday, Buckingham Research initiated coverage of Deckers Outdoor (NASDAQ: DECK) with a Buy rating and $92 price target.

Analyst Scott Krasik believes Deckers 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.