Auriga Starts Deckers Outdoor (DECK) at Buy

Auriga initiates coverage on Deckers Outdoor (NASDAQ: DECK) with a Buy. PT $115.00.

The firm comments, "Our Buy rating on DECK is based on our belief that the company has three opportunities to grow sales and earnings in the short and long term. First, we believe DECK is position to report a better than expected 2H given the strong product offering and conservative assumptions. Second, we believe investors have a decent understanding of the new seasonality shift with DECK's international operations and upside from this division is likely following substantial investments in 2011. Lastly, we believe the recent Sanuk acquisition could provide DECK with a viable growth brand and the opportunity to increase profitability faster than expected in 2012 and beyond. Our $115 PT assumes a 19.5x multiple on our 2012 EPS estimate.

For more ratings news on Deckers Outdoor click here and for the rating history of Deckers Outdoor click here.

Shares of Deckers Outdoor closed at $100.45 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Midday movers: PepsiCo, JetBlue fall; GM, Danaher and UPS rise
• Dynex Capital (DX) PT Lowered to $12.25 at Keefe, Bruyette & Woods
• Netflix (NFLX) bonds retain Outperform rating at Gimme Credit amid strong content ROI