Stifel reiterated its buy rating on Deckers Outdoor (NYSE: DECK) on Tuesday, though it trimmed its price target to $133 from a prior level, as the footwear group’s HOKA and On brands showed resilience in the first quarter of fiscal 2027.
The analyst, Peter McGoldrick, acknowledged that premium running brands HOKA and On continue to face challenges penetrating the youth lifestyle segment, particularly in back-to-school shopping cycles. Deckers’ market capitalization stands at approximately $12.5 billion, with shares last quoted at $92.08, implying a price-to-earnings ratio of 12.9.
Deckers reported first-quarter revenue growth of 6%, exceeding its guidance orientation of 5% for the period. Earnings per share came in at $0.94, surpassing the guided range of $0.82 to $0.87. The company’s guidance for the second quarter fell short of broader market expectations, attributed to timing-related headwinds that weighed on near-term prospects.
Peer target prices for Deckers vary: Truist Securities lowered its target to $105 while maintaining a buy rating, citing stable demand trends. UBS reaffirmed a $161 target with a buy rating, describing Deckers as potentially undervalued growth. Needham adjusted its target to $125 following results that slightly beat expectations. KeyBanc maintained a Sector Neutral rating, noting revenue met expectations, margins outperformed, and growth is expected to accelerate later in the year.
On (NYSE: ONON) also retained Stifel’s buy rating, with shares at $29.51. The analyst’s comments follow a broader trend of mixed but constructive outlooks across the athletic footwear sector, where brand strength and category diversification remain key differentiators.
