Stifel Upgrades Deckers Outdoor (DECK) to 'Buy' Citing Strength in Hoka, Favorable Ugg Outlook

Deckers Outdoor Corporation (NYSE:DECK) is one of the most profitable large cap stocks to buy right now. On November 18, Stifel upgraded Deckers Outdoor to Buy from Hold, while keeping the price target unchanged at $117. This sentiment was posted after the firm hosted management meetings with investors. Stifel reported that the company’s management expressed confidence in the company’s future, specifically anticipating growth for the Hoka brand and favorable supply and demand for Ugg.

Earlier in its FQ2 2026 earnings call, Deckers reported making a total revenue of $1.43 billion, which marked a 9% increase year-over-year and surpassed expectations. Diluted EPS saw a 14% year-over-year increase to $1.82 for the quarter, which was up from $1.59. Both core brands delivered robust revenue growth in FQ2, with HOKA revenue increasing by 11% and UGG revenue increasing by 10%.

Looking at H1 of the fiscal year, HOKA revenue grew by 15% and UGG revenue rose by 12%, both driven by strong performance in international markets. HOKA also saw successful product updates, while UGG saw strong wholesale demand. However, the company also acknowledged negative points, particularly concerning the US consumer market, which is under pressure due to tariffs and price increases. This cautious environment led to a 10% decline in UGG’s DTC sales during FQ2. Deckers now anticipates continued tariff headwinds into FY2027.

Deckers Outdoor Corporation (NYSE:DECK) designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities in the US and internationally.

While we acknowledge the potential of DECK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.