Baird downgraded Deckers Outdoor (DECK) from Outperform to Neutral on Wednesday, setting a new price target of $125.00. This decision stems primarily from concerns over a moderation in the growth trajectory of the HOKA brand.
Analysts worry that conservative financial guidance from Deckers’ management could negatively impact the stock’s near-term multiple. The firm specifically noted that the market may need to adjust expectations for HOKA’s ability to grow market share within the wholesale channel through 2026.
Despite the downgrade, Baird maintains that Deckers’ shares appear undervalued from a long-term perspective. The analysts remain comfortable with the company’s ability to meet or exceed fiscal 2026 earnings per share estimates. This confidence is supported by the healthy brand positioning of UGG and structurally higher operating margins.