Deckers' (DECK) Seasonality Serves as Insulation From COVID - BofA Securities

BofA Securities analyst Rafe Jadrosich reiterated a Buy rating and $210 price target on Deckers Outdoor (NYSE: DECK) into Q4 results on 05/21, citing favorable seasonality, net cash position, share gaining brands, and a strong e-commerce presence. An elaboration on share gaining brands is the expected HOKA reacceleration after COVID, as demand rises despite the looming virus. In the last four weeks, Google searches for HOKA grew 40% YoY, a new all-time high. UGG too can also benefit, as the analyst theorizes that UGG can partially offset wholesale closures with e-commerce growth and demand.

The analyst stated, "We reiterate our Buy rating on DECK ahead of F4Q20 earnings (ended March 2020) on May 21 as we believe it is better positioned than peers given its: (1) favorable seasonality, (2) net cash position (estimate $500mm in net cash at year-end F2020), (3) share gaining brands (both UGG and HOKA), and (4) strong e-commerce presence."

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 $154.51 yesterday.

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