Citi Upgrades Deckers Outdoor (DECK) to Buy

Citi analyst Paul Lejuez upgraded Deckers Outdoor (NYSE: DECK) from Neutral to Buy with a price target of $215.00.

The analyst comments "We are upgrading DECK from Neutral to Buy and maintaining our $215 TP. We believe the 24% sell off in shares post 3Q is unwarranted, and largely driven by fears of slowing Hoka growth, which we view as misunderstood/overblown. Slower expected sales in Hoka’s wholesale biz in 4Q25/1H26 is a function of selling into fewer wholesale doors vs LY, as well as the timing of sell-in (as mgmt is phasing in the Bondi 9 launch TY on a longer timeline than their phasing in of new product LY). We believe underlying demand remains strong (as underscored by Hoka DTC +28% in 3Q). And with 2 yrs of strong DD growth at UGG, UGG’s momentum and dominance in comfort footwear gives us confidence the brand can grow at least MSD in F26 and beyond. DECK trades at an F26E P/E multiple of 24x, below other high-growth peers, suggesting a favorable risk/reward."

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 $172.19 yesterday.

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