Deckers Outdoor (DECK) PT Lowered to $105 at Truist Securities

Truist Securities analyst Joseph Civello lowered the price target on Deckers Outdoor (NYSE: DECK) to $105.00 (from $125.00) while maintaining a Buy rating.

The analyst commented: "2Q outlook pressured by timing issues but no change to underlying demand trends; remain bullish on valuation; DECK shares were down ~5% AMC due to softer 1Q results/2Q guidance for HOKA. While we believe investors are currently less willing to underwrite the steeper 2H-acceleration implied in guidance, we remain more optimistic that NT pressure is timing-related. With (1) solid growth outlooks and underlying demand for both HOKA & UGG, (2) industry leading margins (despite macro choppiness & broader footwear + brand-specific saturation concerns), & (3) a strong balance sheet (cash at ~12% of market cap) we see DECK as a compelling opportunity at ~12x PE. That said, we expect shares to remain rangebound NT until there’s more visibility into durability. PT to $105 from $125."

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