Baird Downgrades Deckers Outdoor (DECK) to Neutral

Baird analyst Jonathan Komp downgraded Deckers Outdoor (NYSE: DECK) from Outperform to Neutral with a price target of $125.00.

The analyst comments: "We remain comfortable in DECK's ability to achieve or exceed our F2026E EPS of $6.39 (+0.9%; consensus $6.41), and shares look undervalued to us when looking on a longer-run basis considering the current NTM P/E of 15.8X on our estimates is below the upper-end of DECK's pre-COVID range (19-20X) even though we believe the business is stronger today based on a healthy brand positioning for UGG, higher mix of revenue from HOKA (leading to higher overall portfolio growth), and higher operating margin and cash flow generation structurally. However, despite these factors supporting our positive broader views, we remain somewhat concerned that the current transition in DECK's growth story especially the moderation in growth expectation for HOKA from stronger +double-digit levels in prior years could remain an overhang on DECK's near-term multiple, especially if management stays conservative with respect to near-term financial guidance, and/or the market remains concerned about HOKA's ability to maintain and grow market share within wholesale during calendar 2026."

For an analyst ratings summary and ratings history on Deckers Outdoor click here. For more ratings news on Deckers Outdoor click here.

Shares of Deckers Outdoor closed at $107.46 yesterday.

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