Stifel raised its price target on Deckers Outdoor (NYSE: DECK) to $74.00 (from $70.00) while maintaining a Buy rating following solid results and outlook amid its ongoing strategic review.

Analyst Jim Duffy said they were encouraged by a solid F4Q results and clarity on objectives for cost savings to yield a $100mn net benefit to EBIT and 13% operating margin by FY20.

He said assuming a revenue range of of $1.8-$2b, this implies F20 earnings power of approximately $5.50 to $6.00 suggesting potential for shares in the mid-eighties plus in 18 month.

On the strategic review, they continue to believe there could be good appetite from a strategic buyer, particularly with evidence of stabilizing fundamentals.