Deckers Outdoor (DECK) PT Lowered to $123 at Raymond James

Raymond James analyst Rick Patel lowered the price target on Deckers Outdoor (NYSE: DECK) to $123.00 (from $140.00) while maintaining a Strong Buy rating.

The analyst comments "Bottom Line: We raise revenue estimates on FX but lower our EPS and Price Target on updated tariff assumptions. We reaffirm our Strong Buy rating as we view expectations are low, FY26 revenue growth has room for upside, and FY27 consensus EPS appears too low. For F1Q, we acknowledge revenue upside is likely limited as HOKA continues facing headwinds from its transition to newer versions of Clifton and Bondi and older versions are phased out (which DECK has called out). Our channel checks point to ongoing softness for DTC in F1Q, but we see better growth at Wholesale as newer products ramp up. We see a modest revenue acceleration for HOKA in F2Q as well as F2H26 and anticipate the wholesale order book will remain robust. For UGG, we see the continuation of +mid-single-digit growth, as planned for F1Q and FY26. This should equate to total revenue growth improving in F2H vs. F1H. For margins, we are now modeling tariffs of 30% for China, 20% for Vietnam, and 20% for other Asia sourcing countries, and we accordingly lower our GM% estimates. We view DECK’s prior tariff guide (300 bp unmitigated GM% headwind, 150 bp mitigated) was conservative, and this limits the downside from higher tariff assumptions. With slower growth planned in FY26, we also see room for better SG&A control. Share buybacks should also continue fueling EPS accretion (DECK ended F4Q with $1.9B of net cash). Net, we see F1Q being more/less in line with the company’s lackluster F4Q results, but better demand should become evident as FY26 moves forward, which keeps us bullish on DECK."

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