Deckers Outdoor ( NYSE: DECK ) stock slipped on Monday as Jefferies analyst Ashley Helgans advised macro and margin risks cloud the growth trajectory for the stock.
Helgans downgraded the stock from “Buy” to “Hold” on Monday, while cutting the firm’s price target to $300 from a prior $350. She noted that strength for the flagship UGG brand is likely to slow post-pandemic with persistent supply chain problems, inflation impacts, and a weaker consumer amid recession fears all weighing on the outlook for the retailer.
“We like the [long-term] HOKA growth story and balance sheet, but growth has peaked and we view potential for downward estimate revisions over the [next twelve months], especially due to freight and for UGG,” Helgans told clients. “Stock fairly reflects growth outlook; we'd look elsewhere for an upside case.”
Shares dipped slightly in Monday’s premarket trading, giving back some gains from a post-earnings acceleration on Friday .
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Deckers Outdoor downgraded as Jefferies grows wary of post-pandemic growth