Jefferies Cuts Price Target on Deckers Outdoor (DECK) Following F4Q Results

Jefferies maintains a Buy rating on Deckers Outdoor (NASDAQ: DECK), and cut the price target to $105.00 (from $110.00), following F4Q. Analyst Randal Konik believes that underlying demand remains strong.

Konik commented, "DECK's better-than-expected F'4Q results showed strength across the portfolio and we continue to like how mgmt is evolving the core UGG brand to generate year-round lifestyle appeal while also delivering accelerated growth in its smaller brands. DECK remains a compelling investment given its proven diversification and omni-channel strategy, opportunity for global growth, multiple levers for margin expansion and attractive valuation. Reiterate Buy, PT to $105."

Konik also added, "While F'1Q guidance was light (due to less fixed cost leverage oppty), the FY outlook is a touch above consensus. Clearly, FX pressures will continue to take their toll on sales and GM (impacts GM 130bp), but a favorable sheepskin cost dynamic, AURs skewing upward, & a continued slant towards higher margin Int'l & DTC sales should improve the quality of margins in FY'16. With stabilized SG&A rates, we expect op margin to shake out roughly flat in FY'16 (down ~15bp), though there could be upside to what we view as a conservative GM% projection."

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 $79.80 yesterday.

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