Deckers shares jump on positive analyst note

Footwear maker Deckers Outdoor Corp. looks set to post solid results in the second half of the year, an analyst said Monday as he raised his target on the stock.

Piper Jaffray analyst Jeffrey Klinefelter wrote in a client note that his channel checks show both new and classic Ugg styles are both selling well. In additional, industry data shows sales of the company's Teva shoes spiked in June. The Goleta, Calif., company also makes Simple and Tsubo brand shoes.

Klinefelter now expects Ugg shipments to grow nearly 40 percent in the third quarter and 32 percent in the fourth quarter, ahead of his prior targets of 25 to 30 percent growth in those periods.

"International markets remain largely untapped, representing only 15 percent of total annual sales," Klinefelter wrote. "We look for international markets to comprise close to 30 percent of sales in the next three to five years, tied in part to the expiration and reacquisition of geographic licenses, which would be immediately accretive to earnings."

The analyst reiterated his "Buy" rating on the stock and raised his price target to $169 from $163. He also raised his profit estimates for the second half of 2008 _ when Deckers generates the majority of its sales and profits _ and added the stock to the Alpha list of preferred near-term investments.

In afternoon trading, Deckers shares rose $4.32, or 3.4 percent, to $133.11.