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Brean Capital Raises Price Target on Deckers Outdoor (DECK) Following Strong 1Q

July 29, 2016 9:57 AM EDT
Get Alerts DECK Hot Sheet
Price: $908.86 -0.1%

Rating Summary:
    25 Buy, 15 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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Brean Capital reiterated a Buy rating on Deckers Outdoor (NYSE: DECK), and raised the price target to $72.00 (from $67.00), following the company's 1Q earnings report. DECK reported revenues down -18.4% y/y and EPS of ($1.80), both beating consensus estimates for revenues of -21% and EPS of ($2.08).

Analyst Eric Tracy commented, "We maintain our constructive stance in shares of DECK following a solid 1Q (albeit low volume) and reaffirmed FY guidance. We continue to believe the 2H setup and risk/reward remain favorable in the name (even after 1H stock outperformance, DECK +34% YTD vs. S&P +6%), predicated on an upward bias to earnings driven by 1) evolution of Classic 2.0, 2) broadening of Ugg brand beyond the core, 3) potential for more favorable weather against easier y/y compares, 4) improving product segmentation and accelerated speed to market and 5) mix shifts to DTC/Int'l, which over time, should yield higher margins. These positive fundamental factors, combined with potential for multiple expansion should our thesis play out (shares currently trade at 14x vs. group at 17x), support further share appreciation, in our view. As such, we maintain our Buy rating, raise our FY16/FY17 EPS ests and take our TP to $72 (up from $67)."

For an analyst ratings summary and ratings history on Deckers Outdoor click here. For more ratings news on Deckers Outdoor click here.

Shares of Deckers Outdoor closed at $63.43 yesterday.



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