According to UBS, it may now be time to film Deckers stocks outdoors following the postponed year of sales. In a memo on Friday, the bank repeated its purchase ratings for footwear manufacturers, which include UGG, Hoka and Teva, which are in the brand’s portfolio. Analyst Jay Saul’s 12-month price target of $158 means the stock could gather nearly 32% from its closing price of $119.63 on Friday. Deckers stocks stumbled 41% this year. Deck YTD Mountain Deck YTD Chart Sole said stock pullbacks could be an attractive entry point for investors. “I think there is a very good opportunity to buy stocks at a growing company that is currently being significantly undervalued by the market,” he writes. One reason for the increased price targets for Sole is that Deckers’ revenues are likely to increase over the next few years. “We’re currently modeling the $7.90 FY28 EPS, and now we see that there’s a high chance that a $10.00 upside case will be rolled out,” says Sole. “The deck has multiple growth drivers, and when viewed in total, it creates a more convincing outlook than we’ve noticed before.” Sole specifically pointed out the strong sales growth potential for Deckers’ Hoka sneaker brand. He said there are new opportunities to expand not only “major” geographical expansion in Asia and Europe, but also new opportunities to expand new verticals such as lifestyle, apparel, training and recovery. He said there is also momentum for the company to increase its global store count. Meanwhile, Sole also highlighted Decker’s recent increase in marketing investments to over 10%. The US brand’s momentum towards Hoka remains strong, and tariff-related risks will not blunt Saul’s “huge enthusiasm,” he said. Analysts added that Hoka’s “Max Cushioning” shoe trend is likely to have feet to maintain a long-term relationship with consumers.
