Williams Trading raised its price target on Deckers Outdoor (NYSE:DECK) to $160.00 from $135.00 and maintained a Buy rating, citing the company's better-than-expected fiscal third-quarter 2026 results and an upward revision to full-year guidance.
The analyst move is consistent with broader market sentiment: consensus targets tracked by InvestingPro point to roughly 15% upside from current levels, while Deckers is trading at a price-to-earnings ratio of 14.77.
The decision to raise the target followed Deckers' third-quarter fiscal 2026 performance, which exceeded consensus estimates across all reported metrics. Management also increased its full-year 2026 guidance, a step Williams Trading described as conservative in light of the quarter's strength.
Underlying the firm's positive view are recent operational trends. InvestingPro data show Deckers posted 12.62% revenue growth over the last twelve months and generated a gross profit margin of 57.66%.
Williams Trading pointed to robust brand-level results in the quarter: UGG sales rose 4.95% while Hoka sales were up 18.5% in fiscal Q3 2026. The analyst attributed these gains to what it called an "evolving brand management" approach that helps the company remain relatively insulated from macroeconomic pressures.
The firm also observed that tariff-related headwinds did not prove as severe as initially feared. Promotional activity was higher year-over-year but stayed below the levels analysts had expected, and consumer reaction to selective price increases implemented to offset tariffs was muted.
According to Williams Trading, both Hoka and UGG continue to demonstrate pricing power, with consumers favoring these "strong, well managed brands with compelling product, even during uncertain times." That brand strength is also reflected in valuation metrics: InvestingPro indicates Deckers is currently undervalued on its Fair Value assessment and shows a PEG ratio of 0.76.
Deckers' fiscal third-quarter 2026 results themselves showed a notable beat on the top and bottom lines. The company reported revenue growth of 7% for the quarter and earnings per share of $3.33, compared with analyst expectations of 2% revenue growth and $2.77 in EPS.
In the aftermath of the quarterly release, several brokerages revised their Deckers price targets and ratings:
- Needham raised its target to $138 and kept a Buy rating, citing the company's strong quarter.
- Piper Sandler increased its target to $95 while maintaining an Underweight rating, noting high-teens growth in both direct-to-consumer and wholesale channels.
- Bernstein adjusted its target to $90 and retained an Underperform rating, while pointing to Hoka's return to growth in U.S. direct-to-consumer channels.
- Evercore ISI lifted its price target to $108, characterizing the quarter as strong overall.
- BTIG kept a Neutral rating, acknowledging balanced growth across Deckers' brands.
The mix of upward target revisions and a range of ratings highlights differing views on how sustainable the recent momentum will be. Williams Trading's upgrade to $160 reflects confidence in Deckers' recent results, brand traction, and pricing resilience, while other firms adjusted targets and ratings based on their own channel-level and margin assessments.
Investors watching consumer discretionary and footwear stocks will likely focus on Deckers' continued margin strength, the company’s ability to manage tariffs and promotions, and the durability of demand for UGG and Hoka products as they evaluate the path forward.
Note: All financial figures, analyst actions, and channel-level performance cited above are based on the company's fiscal third-quarter 2026 reporting and subsequent analyst commentary as described.