Deckers Outdoor Stock Is a Sell. Promotions Are an ‘Unhealthy’ Sales Tool.
Market Intelligence Analysis
AI-PoweredPiper Sandler downgraded Deckers Outdoor stock to Sell, citing an over-reliance on promotions that may harm wholesale business, leading to a reduced target price of $85 from $100.
Market impact analysis based on bearish sentiment with 90% confidence.
Article Context
The firm downgraded shares of the footwear company to Underweight, the equivalent of Sell, from Neutral, cutting its target for the price to $85 from $100. Deckers, which owns the Ugg and Hoka brands, is relying too heavily on promotions to sell shoes directly to consumers, which may cannibalize some of its wholesale businesses, Piper Sandler said. While investors got some hope with a 27% gain across November and December, that optimism may have been misplaced, said Piper Sandler analysts Anna Andreeva and Noah Helfstein in a research note Wednesday.
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