In a report published on Thursday, a Wedbush analyst raised the price objective on Deckers Brands (NYSE:DECK) shares from $320 to $410 and upgraded the stock to Outperform from Neutral. The analyst additionally added the stock to Wedbush’s Best Ideas List.
“DECK was a highlight last EPS season as one of the only firms in our coverage to improve guidance,” the analyst said. “Amidst an incredibly difficult retail market.” “We’ve grown more at ease with the direction the UGG brand is taking, while the fast expanding Hoka brand continues to be one of the most exciting, high-momentum growth stories in our market.”

The analyst said that they think Hoka still has a significant runway for growth despite rising by 55 per cent in the first quarter of this year. Amplification of internet search trends for the brand has been observed; he continued, “notably, the brand is in the early phases of distribution to national sporting goods retailers (e.g. DKS and FL).”
According to Wedbush, the “high-quality name” is expected to keep outperforming because of the “high-quality name’s” solid margins, fortress balance sheet, and top-line growth.