Needham Cuts Deckers Price Target, Maintains ‘Buy’ Rating

NEW YORK, NY — On Wednesday, May 21, investment firm Needham reaffirmed a “Buy” rating on Deckers Outdoor Corporation but lowered its price target from $246 to $150. The firm’s analysts believe the upcoming Q4 fiscal report, set to be released after market hours on Thursday, is unlikely to significantly boost the stock’s value.

Needham’s analysts predict that Deckers, which trades under the ticker symbol DECK, will likely exceed its conservative Q4 guidance. However, they expect a more modest outperformance compared to last year’s results, where the company surpassed expectations by more than twice its forecast.

The cautious outlook stems from slower growth in Deckers’ Hoka brand, a return to typical markdown levels, and the implications of tariffs. Although analysts upped their earnings per share (EPS) prediction for Q4 of fiscal 2025 to $0.57 from $0.45, they also lowered EPS estimates for fiscal years 2026 and 2027.

Deckers, based in California, designs and distributes a range of footwear, apparel, and accessories under brands like UGG, HOKA, and Teva in over 50 countries worldwide.

Despite the potential for investment returns with Deckers, some analysts caution that other sectors, particularly in artificial intelligence (AI), may offer higher returns with lower risk. AI’s demand for energy and infrastructure is growing, raising questions about energy supply as the technology continues to evolve rapidly.

“We’re keeping an eye on the market and suggesting that investors explore comprehensive insights into AI opportunities,” a Needham analyst stated.