Bank of America picked up coverage again on Deckers Outdoor Corporation ( NYSE: DECK ) with a Buy rating.
Analyst Christopher Nardone and team view Deckers Outdoor ( DECK ) as a high quality stock with a compelling growth trajectory. The firm expects strong results from the HOKA business where it sees a strong line of sight for continued market share gains.
"The crown jewel in DECK’s portfolio is HOKA. We have confidence the brand will continue to be a leader in the specialty run/walk category, as sell through trends based on our channel checks remain robust. We see a clear runway for growth and expect brand revenue to double to $2.2bn by F25, led by leading product innovation."
Meanwhile, UGG is viewed as a stable business that can help fund HOKA’s significant growth potential.
BofA assigned a price objective of $425 to DECK based on a multiple of 14X the EV/EBITDA estimate for 2024. That PT reps upside potential of more than 20%.
Shares of DECK rose 0.45% in premarket action on Tuesday to $351.51 vs. the 52-week trading range of $212.93 to $448.07.
The Seeking Alpha Quant Rating on Deckers Outdoor is also flashing Buy.
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Deckers Outdoor attracts bull rating from BofA with HOKA called a crown jewel