Jefferies upgraded Deckers Outdoor (NASDAQ: DECK) from Hold to Buy with a price target of $130.00 (from $78.00) following Q2 results.

Analyst Randal J. Konik states, "We are upgrading our rating on DECK to Buy from Hold because we now have more conviction that the company can see margin re-expansion in CY'15 and believe the Street under-appreciates the topline upside opportunity from new products, particularly the recently launched I Heart UGG sub-brand. As we move toward more fundamentally and seasonally relevant 2H, we are raising our estimates and our PT to $130 based on 3 primary drivers outlined below."

The firm raised FY 2014 EPS from $4.62 to $4.75 and FY 2015 EPS from $5.35 to $6.25.

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 $79.80 yesterday.