Jefferies upgraded Deckers Outdoor (NYSE: DECK) to Buy from Hold.
The firm raised its price target for the stock to $130 from $110.
Analysts cite medium-term guidance projecting stable operating margins and steady earnings growth.
Planned share buybacks are expected to further support earnings performance.
Recent meetings with management increased Jefferies' confidence in the company's ability to maintain profit levels.
Jefferies views the current valuation as attractive because the market has already priced in a slowdown in EBIT growth.