Deckers Outdoor's shares may experience upward momentum as Jefferies has upgraded the stock from hold to buy, increasing the price target from $110 to $130, which suggests a 23% upside from the recent closing price.
Analyst Blake Anderson noted that the company's Hoka brand is showing early signs of success in product innovation, particularly with the recent launch of the Clifton Pro sneaker aimed at serious runners. This diversification is seen as crucial for driving sales growth, especially as Hoka has previously struggled with slow sales due to a lack of innovation.
Despite a modest 4% gain in Deckers' shares over the past year, significantly lagging behind the S&P 500's 21% increase, the market sentiment is shifting positively. Jefferies' outlook aligns with broader Wall Street consensus, where 13 out of 27 analysts recommend buying the stock, indicating a growing confidence in Deckers' ability to leverage its brand strengths and improve performance