Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Deckers Brands Started at Overweight as Piper Sandler Bullish on Athletic Footwear

Stock Markets Oct 25, 2022 12:56
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
DECK
-1.44%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sam Boughedda

Piper Sandler initiated shares of Deckers Brands (NYSE:DECK) with an Overweight rating and a $440 price target in a note to investors on Tuesday.

Analysts there said the firm is expanding its coverage of athletic and footwear, and it remains bullish on innovation-driven athletic footwear, which includes HOKA.

"In the current environment, we view penetration with the run specialty consumer as a key advantage which should also perpetuate the lifestyle component. We think HOKA can grow at a 25% CAGR in the medium-term, and solid 17.5%+ operating margin will power capital return to DECK shareholders," wrote the analysts.

In addition, the Piper Sandler analysts believe that as brands enhance their DTC focus, there will be a selected set of wholesale retailers that will be important brand partners.

"We think Famous Footwear is positioned well in the family channel where we see less risk of online disruption, but we are more cautious on near-term results given exposure to a middle-income consumer," they added. "We initiate Overweight on DECK due to momentum at HOKA, solid FCF and capital return to shareholders, and near-term tailwinds for UGG."

Deckers Brands Started at Overweight as Piper Sandler Bullish on Athletic Footwear
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email