Is Deckers Still A Buy? Wunderlich Thinks So

In a report published Thursday, Wunderlich analysts reiterated their Buy rating on

as well as the price target of $89. The analysts have, however, lowered their FY15 EPS estimate for the company. The stronger dollar is likely to have impacted the company's 4QFY15 earnings. The Fx headwinds are likely to have offset the increased traction in several of Deckers' businesses. With the euro continuing at a decline of 18 percent, year on year, as compared to the US dollar, Deckers is likely to have been impacted, given that over 30 percent of its business is international. Deckers is expected to give an update regarding its Fall bookings when it reports its 4Q earnings. "Given the higher-thananticipated demand of UGG's updated fashion looks and adjusted prices in the 2014 selling period and, subsequently, the inability to fulfill demand with limited inventory on-hand, retail customers had higher conviction and were more apt to increase commitments in such styles," the analysts said. According to the Wunderlich report, ""Deckers remains focused on diversifying the overall branded portfolio, optimizing operating and planning systems, and leveraging omnichannel investments as it tailors its shopping experience to the new demands and shopping behaviors of the consumer." The sharp decline in the share price and the risk/reward profile make the stock "highly appealing" at the current levels.