Deckers Outdoor Corporation (NYSE: DECK) shares gained 3.5% on Monday following an upgrade from Jefferies, which moved its rating to Buy from Hold and lifted the price target to $130 from $110.
Jefferies analyst Blake Anderson identified the companys medium-term guidance, disclosed on the firm's fourth-quarter earnings call, as a key factor behind the upgrade. That guidance calls for high-single-digit revenue growth, stable operating margins in the low-20% range, and low-double-digit earnings-per-share growth supported by share buybacks.
Anderson also highlighted expectations for operating-profit (EBIT) growth to decelerate to about high-single-digits, contrasting with an approximate 20% compound annual growth rate over the last six years. He noted that this anticipated slowdown appears to be priced into the stock, pointing to a decline in the price-to-earnings multiple from roughly 33x to about 13x.
"After spending more time w/ mgmt. at our recent Nantucket conference, we walked away better appreciating mgmts ability to drive both durable growth and margins."
The Jefferies move reflects a reassessment of managements confidence in sustaining multi-year growth while keeping margins largely flat, addressing earlier investor concerns about potential margin compression.
In a separate note, Stifel analyst Peter McGoldrick reiterated a Buy rating on Deckers and set a $144 price target. McGoldrick expects upside to consensus estimates and a modest upward revision to fiscal 2027 guidance based on first-quarter fiscal 2027 results. He flagged the launches of the Clifton 11 and Clifton Pro at higher average selling prices as constructive developments for the HOKA brand.
Stifel projected that the fiscal 2027 revenue guidance range could be raised by $20 million and characterized the current gross-margin outlook as conservative, leaving room for potential upside in the range of $50 million to $100 million as the fiscal year progresses.
The combined analyst attention from Jefferies and Stifel, led by focused guidance and product-level strength, contributed to the markets positive reaction to Deckers shares on Monday.
Market context: The coverage and guidance commentary touch primarily the consumer discretionary and retail segments, with implications for footwear brands and public equities that track revenue and margin trajectories in that space.