On May 24, BofA Securities analyst Chris Nardone adjusted his price target for Deckers Outdoor Corporation (NYSE:DECK) from $154 to $128 while keeping a Neutral rating.
Nardone voiced doubts about Deckers’ HOKA brand’s ability to spur growth in the cutthroat U.S. running market after sales slowed in the fourth quarter. HOKA’s Clifton and Bondi shoe lines now come in a broader range of colors, which the analyst believes could increase sales. However, he is not convinced that the changes in these lines will speed up growth in a meaningful way, and he has projected a 13% growth for HOKA in Fiscal Year 2026.
Furthermore, according to Nardone, Deckers’ UGG brand may be able to outperform its growth algorithm with the help of pricing strategies and the significant order volumes generated by last year’s successful holiday season. According to current trends, the availability of essential UGG products has improved, and the brand is expected to grow by 7% in Fiscal Year 2026, though the analyst warns that price changes may reduce consumer demand.
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Read More: 10 Best Stocks to Buy According to the Bill & Melinda Gates Foundation Trust and 15 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies.
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