Deckers Outdoor Faces Direct-To-Consumer Growth Slowdown, Analyst Downgrades Stock
Portfolio Pulse from Lekha Gupta
Truist Securities analyst Joseph Civello downgraded Deckers Outdoor Corp (DECK) to Hold from Buy and reduced the price target to $864 from $983 due to a slowdown in Direct-to-Consumer growth for HOKA, observed through Truist Card Data. The growth forecast for this segment was lowered to 25% from about 40%, and EPS estimates for FY24, FY25, and FY26 were also reduced. Investors can gain exposure to DECK through Invesco S&P MidCap Momentum ETF (XMMO) and Pacer Lunt MidCap Multi-Factor Alternator ETF (PAMC). DECK shares saw a slight increase of 0.24% to $812.08.
April 11, 2024 | 4:04 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Deckers Outdoor downgraded to Hold from Buy by Truist Securities with a price target cut to $864 from $983 due to a slowdown in DTC growth for HOKA.
The downgrade and price target cut by a significant analyst due to a slowdown in direct-to-consumer growth for HOKA is likely to negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Pacer Lunt MidCap Multi-Factor Alternator ETF (PAMC) is another way investors can gain exposure to DECK, potentially facing indirect impacts from DECK's market performance.
PAMC, like XMMO, offers exposure to DECK. However, the impact of DECK's downgrade on PAMC's overall performance is expected to be minimal due to the ETF's diversified portfolio.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Deckers Outdoor through Invesco S&P MidCap Momentum ETF (XMMO), which may be indirectly impacted by DECK's performance.
While XMMO provides exposure to DECK, the ETF's diversified nature means the direct impact of DECK's downgrade on XMMO's performance is likely to be limited.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50