Deckers Outdoor shares could gain steam as the footwear seller diversifies its product offerings, particularly across its Hoka brand, according to Jefferies. The investment firm upgraded the stock to buy from hold. It also hiked its price target on shares to $130 from $110, implying 23% upside from Friday’s close. “We … view upside [opportunity] over 12+ [months] depending on success of HOKA product innovation, where early signs are encouraging,” analyst Blake Anderson said Monday in a note. “We esp. like HOKA’s segmentation across more performance and into lifestyle, where it can [leverage] learnings from UGG.” Shares of Deckers Outdoor are up 4% over the past year, vastly underperforming the S & P 500, which has surged 21% in that time. Its modest gains come as the company has seen slow sales for Hoka, its everyday footwear brand, after being slow to innovate its product lines. However, the company has taken steps to diversify Hoka’s offerings. It recently introduced the Clifton Pro, a sneaker model intended for more serious runners compared to its original designs. DECK 1Y mountain Shares of Deckers Outdoor are up 4% over the past 12 months. “We are esp. optimistic that co’s enhanced segmentation efforts, although early w/ the launch of Clifton Pro last week marking a significant milestone, could be a key source of sales outperformance,” Anderson wrote. That analyst added that “while HOKA is [a] key debate, UGG should also be more durable than [the market] expects,” driving even more value to its parent company’s stock. Jefferies’ call falls in line with consensus on Wall Street. Of the 27 analysts covering Deckers Outdoor, 13 have a buy or strong buy on the stock, LSEG data shows.
UGG, HOKA owner to gain traction on new launches, Jefferies says
