Piper Jaffray Cuts Their Price Target on Deckers Outdoor (DECK) to $97

January 7, 2009 8:33 AM EST

Piper Jaffray cuts their price target on Deckers Outdoor (NASDAQ: DECK) from $126 to $97 and removes the company from the Alpha List. The firm also lowers their FY09 EPS forecast from $8.38 to $8.06. Piper Jaffray maintains their Buy rating.

The firm said, "We are raising our near-term sales and EPS estimates based on what we expect to be another strong fourth quarter for the Ugg brand. Based on our checks, sell through rates were at or better than plan across most retail channels. We think end of period inventory is controlled and retailers are pleased with full price selling trends through the season - an outlier in the current highly promotional selling environment. We have raised our EPS by 5 cents and think an additional 5-10 cents of upside to the quarter is possible given channel checks point to strong sell-through of UGG product in all channels with minimal promotional activity."

Piper Jaffray lowered their FY09 estimates as the firm is "taking a more bottoms up approach to sales/door, U.S./international mix, and overall pricing assumptions across all brands for FY09 and are not flowing through FQ4 upside to growth assumptions for FY09." The firm thinks growth in the 10%-15% range is more reasonable vs. the previous estimate of 15%-20%.

Deckers Outdoor is engaged as a designer, producer and brand manager of footwear, with operations in the sport sandal, sheepskin, and sustainable footwear market segments.

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