Stifel has raised its target price for Deckers Outdoor to $140.00 from $117.00 while retaining a Buy rating on the stock. The move follows a fiscal third-quarter performance that surpassed consensus expectations across key metrics.
Deckers is trading at a price-to-earnings ratio of 17.09 and carries a PEG ratio of 0.76, metrics that suggest valuation appears reasonable relative to projected growth. The quarter was seasonally important for the company and produced results that beat estimates by meaningful margins: revenue exceeded forecasts by $90 million and earnings per share topped expectations by $0.62.
The company reported 12.62% revenue growth over the trailing twelve months, with total revenue reaching $5.24 billion. Management also signaled improved retail dynamics, with Stifel pointing to a 7.3% constant currency comparable sales increase in the direct-to-consumer channel after three consecutive quarters of declines. That rebound was cited as validation of Deckers’ channel segmentation strategy.
Balance-sheet strength was highlighted in Stifel’s note, with Deckers carrying a current ratio of 3.07, indicating substantial near-term liquidity. Brand contributions to revenue remained concentrated: UGG accounted for 67% of third-quarter sales.
Despite UGG’s dominant share, Stifel emphasized that market sentiment around the stock is currently linked to the trajectory of HOKA. Stifel observed acceleration at HOKA and an upward revision to its guidance, developments the firm said support both estimates and the potential for multiple expansion.
Stifel described Deckers’ fiscal year 2026 guidance as conservative and adjusted its out-year forecasts higher based on the quarter’s execution and improving trends. The new $140 price target corresponds to 11.8x enterprise value to EBITDA using Stifel’s FY28 adjusted EBITDA estimate of $1,518 million.
Other broker reactions following Deckers’ fiscal third-quarter 2026 report were varied but generally reflected the stronger results and the company’s raised full-year outlook. The company posted revenue growth of 7% for the quarter and delivered earnings per share of $3.33, ahead of the street expectation of approximately 2% revenue growth and $2.77 in EPS.
- Truist Securities increased its price target to $132 and maintained a Buy rating, citing robust performance from HOKA and UGG.
- Williams Trading raised its target to $160 and described the company’s full-year guidance as conservative.
- Piper Sandler adjusted its target to $95 while maintaining an Underweight rating, noting high-teens growth in both direct-to-consumer and wholesale channels.
- Bernstein moved its target to $90, highlighting a return to growth for the HOKA brand in U.S. direct-to-consumer channels.
- Needham lifted its price target to $138 and kept a Buy rating after the earnings release.
Collectively, the analyst responses reflect differing assessments of brand momentum, channel mix recovery, and the implications of conservative guidance on valuation. Stifel’s update, in particular, ties a higher multiple to continued execution and HOKA’s trajectory while acknowledging UGG’s outsized revenue contribution.
Summary of the quarter’s financial highlights:
- Revenue beat by $90 million.
- EPS beat by $0.62 in the seasonally important quarter.
- Trailing twelve-month revenue growth of 12.62% to $5.24 billion.
- Direct-to-consumer comparable sales rose 7.3% on a constant currency basis after three quarters of declines.
- Current ratio stood at 3.07.
- UGG represented 67% of third-quarter revenue.
- Stifel’s new price target equates to 11.8x EV/EBITDA on a FY28 adjusted EBITDA estimate of $1,518 million.
Investors and market participants will be watching HOKA’s continued performance and the company’s ability to convert improving sales trends into sustainable earnings and margin expansion. For now, analysts have diverged on valuation and near-term expectations, but the consensus reaction reflects recognition of a materially stronger quarter and an upward tilt to forward estimates from select firms.