On Friday, Deckers Outdoor Corporation (NYSE:DECK), known for its footwear brands such as UGG and HOKA, received an updated price target from KeyBanc. The firm increased its price target for the company's shares to $1,015 from the previous $960, while maintaining an Overweight rating on the stock.
The adjustment follows Deckers' impressive fourth-quarter results, which surpassed high market expectations. The company's financial performance has been robust, and its fiscal year 2025 (FY25) revenue guidance indicates a year-over-year growth of 10%. HOKA, one of Deckers' core brands, is expected to be the primary contributor to this growth, with a projected increase of 20% year-over-year.
KeyBanc's analysis highlighted HOKA's role in driving the company's top-line growth for the fiscal year. The brand's expansion is anticipated to come from increased brand recognition, direct-to-consumer (DTC) growth on a global scale, and strategic door expansion, with a focus on international markets. The firm also noted Deckers' commitment to marketplace management.
The analyst from KeyBanc expressed confidence in Deckers' strategy of introducing new products and innovating, as well as effectively managing sales channels for both HOKA and UGG. This approach is expected to support Deckers' continued success throughout the year.
In light of the company's clear guidance for FY25 and the positive outlook on its growth drivers, KeyBanc has revised its estimates, leading to the raised price target on Deckers Outdoor shares. The Overweight rating suggests that KeyBanc anticipates the company's stock to outperform the average return of the stocks that the firm covers.
InvestingPro Insights
Deckers Outdoor Corporation (NYSE:DECK) has demonstrated a strong financial foundation and growth potential, as reflected in the latest InvestingPro data. With a market capitalization of $23.22 billion and a P/E ratio of 31.02, Deckers stands out for its robust earnings. The company's revenue growth is also impressive, showing a 15.34% increase over the last twelve months as of Q3 2024. This aligns with KeyBanc's positive outlook and the firm's revised price target.
InvestingPro Tips highlight several strengths of Deckers, including the fact that the company holds more cash than debt on its balance sheet and has seen six analysts revise their earnings upwards for the upcoming period. These factors, combined with a high return of 105.45% over the last year, bolster the optimistic view of Deckers' stock performance. Additionally, Deckers' cash flows are strong enough to comfortably cover interest payments, and the company is expected to be profitable this year, as per analysts' predictions.
For investors looking to delve deeper into Deckers' potential, there are more InvestingPro Tips available at https://www.investing.com/pro/DECK. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 16 additional InvestingPro Tips for Deckers that could guide investment decisions and provide a more comprehensive understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.