2023-04-17 10:48:26 ET
Stifel indicated on Monday that channel checks into sales for Deckers Outdoors ( NYSE: DECK ) shows “continued momentum” for the HOKA brand.
Equity analyst Jim Duffy indicated that upside for the brand should help drive above consensus sales in the company’s upcoming Q4 2023 earnings result and in fiscal 2024, making the valuation “palatable.” He added that growth investors should add the name given the opportunity, underwritten by the HOKA brand.
“Checks show very strong consumer trends in HOKA and we are raising HOKA estimates for FY4Q (+35% vs. +20% prior) and FY24 (+27.5% vs. +25% prior),” Duffy told clients. “For the stock, we are optimistic about the accretive growth and margin contribution of the HOKA brand and believe HOKA’s associated earnings contribution is deserving of a premium multiple.”
Duffy added that he is “comfortable” with an above consensus view on EPS and revenue in fiscal year 2024. He hiked his full-year 2023 EPS forecast by $0.27 to $2.71 and his 2024 outlook by $0.30 to $22.00. Given the EPS shift, his price target jumped to $550 from a prior $485, reaffirming a Buy rating.
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Deckers Outdoors estimates hiked as Stifel eyes positive HOKA sales trends