Needham Maintains Buy Rating on Deckers Outdoor Corporation (DECK), Cuts PT

On Wednesday, May 21, Needham reiterated a “Buy” rating on Deckers Outdoor Corporation (NYSE:DECK) but cut the price target to $150 from $246. The firm expects the company’s Q4 report for fiscal year 2025, which is scheduled for release after the market closes on Thursday, is not likely to serve as a strong positive driver for the stock’s value.

According to Needham’s analysts, Deckers Outdoor Corporation (NYSE:DECK) is expected to beat its conservative Q4 guidance, but the margin of outperformance is expected to be less than last year’s results. In the previous year, the company surpassed expectations by more than twice the implied Q4 guide. Despite the expected beat, the analysts believe that any guidance provided for the fiscal year 2026 might fall short of the sell-side consensus.

This cautious outlook is based on factors like slower growth of the company’s Hoka brand, a return to normal levels of markdowns, and the effects of tariffs. Needham has raised its earnings per share (EPS) forecast for Deckers Outdoor Corporation’s (NYSE:DECK) Q4 of fiscal 2025 to $0.57, up from the previous $0.45, and for the full fiscal year 2025 to $5.90, up from $5.78. However, the firm reduced the EPS estimates for fiscal years 2026 and 2027 to $5.90 and $6.55 from the previous forecasts of $6.29 and $7.04, respectively.

Deckers Outdoor Corporation (NYSE:DECK) specializes in designing and distributing footwear, apparel, and accessories for everyday casual lifestyle use and high-performance activities. The company’s portfolio of brands includes UGG, HOKA, Koolaburra, Teva, and AHNU. Deckers Outdoor Corporation (NYSE:DECK) sells its products in more than 50 countries and territories around the world.

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