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Deckers Outdoor Corporation (NYSE: BRIDGE) rallied in early afternoon trading Thursday after Evercore ISI launched coverage on the footwear stock with an Outperform rating.
Analyst Jesalyn Wong and her team believe that Deckers (DECK) offers one of the best operates in the sector, with a high-quality growth profile and a portfolio of differentiated brands that support strong brand momentum across multiple metrics. In addition to these positive growth factors, Deckers (BRIDGE) you also see a history of margin expansion seeping through. Proprietary research from Evercore also suggests that the market is underestimating the untapped awareness of the HOKA brand, while UGG is also seeing signs of brand momentum.
“Coupled with a favorable macroeconomic backdrop (sequential improvements in our Softlines leading indicator, potential rate cuts that have historically led to multiple expansions), we estimate DECK to deliver 13% EBITDA CAGR in CY23-25E versus negative 7% CAGR .”
Evercore set a $960 price target on DECK. Deckers (DECK) stock is up 1.90% as of 1.15pm Thursday at $864.25 versus its 52-week trading range of $395.91 to $903.70.