Please ensure Javascript is enabled for purposes of website accessibility

Is Ugg Parent Decker Outdoor No More Than a $165 Stock?

By Rich Duprey – May 15, 2020 at 8:29AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One analyst no longer sees the footwear company hitting the lofty target he previously set.

Decker Outdoor (DECK -0.59%) has clawed its way back from the hole it fell into at the onset of the COVID-19 pandemic, rising 77% to approximately $140 per share. 

That's still well below the all-time high of $203 per share it hit in mid-February, and if Pivotal Research analyst Mitch Kummetz is correct in his analysis, while there's still some upside left, it's not near what he thought before the bottom fell out of the retail market.

Woman wearing Ugg boots

Image source: Decker Outdoor.

More carnage to come

Kummetz lowered his price target on the owner of brands such as Ugg and Teva from the $217 per share level he set it back in January to $165 today, a 24% drop because the worst of the pandemic is still to come for the footwear company as it prepares to report fiscal fourth-quarter earnings.

Previously, Kummetz pegged Deckers to post sales at the high end of management's forecasted range of between $392 million and $402 million, but Thefly.com says he subsequently lowered that outlook by 14% because that "is in the ballpark of what we've seen from other companies this earnings season."

That puts Decker's sales around $345 million, but the analyst believes the weight of the pandemic will actually fall on fiscal first-quarter results due to the number of order cancellations and company-owned store closures.

The silver lining is Kummetz' price target still sees 17% upside from here.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Deckers Outdoor Corporation Stock Quote
Deckers Outdoor Corporation
DECK
$319.98 (-0.59%) $-1.90

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.