Deckers Outdoor Corp. ( NYSE: DECK ) rose sharply in Thursday’s premarket trading after Wedbush upgraded the stock from Neutral to Outperform and hiked its price target by over 20%.
“Amidst an extremely challenging retail environment, DECK was a standout last EPS season as one of the only companies in our coverage to actually raise guidance. The rapidly-growing Hoka brand remains one of the most compelling, high-momentum growth stories in our space, while we've become more comfortable with the direction of the UGG brand,” the note explained. Given the combination of top-line growth, strong margins, and a fortress balance sheet, we think that this high-quality name is poised to be a continued outperformer.”
Distribution deals for the Hoka brand at Dick’s Sporting Goods and Foot Locker are also expected to aid growth for the brand.
Alongside the upgrade to a Buy-equivalent rating, Wedbush added the name to its “Best Idea” list and raised its price target from $320 to $410.
Read more on Jefferies' contrastingly cautious view of the stock .
For further details see:
Deckers Outdoor named ‘Best Idea’ at Wedbush