Deckers: As Hoka Turns The Corner, So Can The Stock
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Passage Research4.93K FollowersFollow5ShareSavePlay(12min)CommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryDeckers is poised for upside as HOKA growth compares ease and FY27 guidance approaches, offering a potential catalyst for shares.DECK trades at 15.8x forward earnings, with a robust free cash flow yield (~6.7%) and best-in-class 23% operating margins versus peers.I expect a material Q4 top-line beat and conservative FY27 guidance, setting the stage for multiple expansion.A 19x multiple on $7.50 FY27 EPS yields a $142 price target, 32% upside from current levels, supported by stable UGG and resurgent HOKA. Robert Way/iStock Editorial via Getty Images Deckers (DECK) has been on a wild ride the last few years. From being a darling consumer discretionary stock to one of the worst performers in retail, the stock has been trading sideways YTDThis article was written byPassage Research4.93K FollowersFollowPassage Research focuses on identifying variant perception through a blend of fundamental analysis and alternative data. The research process combines detailed financial modeling with real-time datasets to underwrite earnings power, margin durability, and forward expectations.The author has spent over a decade on Wall Street, most recently spending the last five years working in the hedge fund industry as an analyst. Typical coverage spans consumer, TMT, industrials and special situations, with an emphasis on asymmetric risk/reward and catalyst-driven opportunities.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DECK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.