Deckers Brands (DECK) was cut to Neutral from Buy at Citi on Friday, with analysts upping the firm's price target on the stock to $710 from $665 per share.
Analysts said the firm has decided to downgrade the stock following a strong run and a more balanced risk/reward.
"While we are raising F24E from $24.44 to $24.69 to reflect strong UGG momentum in 2H24 (and raising our TP to $710), we believe the market now has high expectations that are getting increasingly difficult to beat," said the analysts.
"The Hoka brand has grown significantly in recent years, and growth potential remains notable, but it may be harder to impress the market from here. And while UGG is having a banner F24, growth in F25 may be challenging against difficult comparisons," they added.
Citi stated that "this is not a 'head for the exits' call," and they still believe the company's growth profile remains attractive. However, the downgrade is "more reflective of our view that the risk/reward has become more balanced."