Deckers Outdoor (DECK) UGG Brand Has Stabilized; Top-Line Growth Key - Sterne Agee
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Price: $90.21 +1.52%
Rating Summary:
23 Buy, 21 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
23 Buy, 21 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Sterne Agee analyst Sam Poser reiterated a Buy rating and $68 price target on Deckers Outdoor (NASDAQ: DECK) intra-day Tuesday after an investor presentation at a Jefferies conference earlier. The firm said the presentation highlighted that EPS growth will be the primarily driven by top line growth.
"We believe that new, innovative UGG product is essential to meet or exceed the mid teen EBIT target," Poser states. "Fixed costs from the growing retail base limit the upside to margins in the near term. We believe that the UGG product in 2013 has slightly improved. The fall '14 product which will be shown to retailers in early December must be compelling in order to meet the company's long term financial objectives. The benefits of UGG Pure will come into play if the 2014 product is compelling and innovative."
The analyst said 2013 is shaping up well with inventory levels at key wholesale accounts far cleaner than they were a year ago. The firm is confident that the UGG brand has stabilized and guidance is achievable.
The analyst said the next catalyst will be the Nordstrom (NYSE: JWN) Anniversary Sale, which will likely provide insights into fall demand.
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 $54.52 yesterday.
"We believe that new, innovative UGG product is essential to meet or exceed the mid teen EBIT target," Poser states. "Fixed costs from the growing retail base limit the upside to margins in the near term. We believe that the UGG product in 2013 has slightly improved. The fall '14 product which will be shown to retailers in early December must be compelling in order to meet the company's long term financial objectives. The benefits of UGG Pure will come into play if the 2014 product is compelling and innovative."
The analyst said 2013 is shaping up well with inventory levels at key wholesale accounts far cleaner than they were a year ago. The firm is confident that the UGG brand has stabilized and guidance is achievable.
The analyst said the next catalyst will be the Nordstrom (NYSE: JWN) Anniversary Sale, which will likely provide insights into fall demand.
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 $54.52 yesterday.
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