Baird Downgrades Deckers Outdoor Stock Rating to Neutral on HOKA Growth Concerns

Baird Downgrades Deckers Outdoor Stock Rating to Neutral on HOKA Growth Concerns

Deckers Outdoor, the parent company of HOKA, has seen its stock rating downgraded by Baird to Neutral due to concerns over HOKA's growth prospects.

Concerns Over HOKA's Growth

Baird's downgrade is based on the company's concerns over HOKA's ability to sustain its growth momentum. HOKA has been a key driver of Deckers Outdoor's success in recent years, with its high-end running shoes and trail running shoes gaining popularity among outdoor enthusiasts.

Impact on Deckers Outdoor's Stock Price

The downgrade is likely to have a negative impact on Deckers Outdoor's stock price, which has been on a steady rise in recent years. The company's stock price has risen by over 20% in the past year, driven by the success of HOKA and other brands in its portfolio.

Baird's Recommendation

Baird is recommending that investors maintain a neutral stance on Deckers Outdoor's stock, citing the company's high valuation and concerns over HOKA's growth prospects. The firm is also warning investors that the company's earnings growth may slow down in the coming quarters.

Impact on HOKA's Business

The downgrade is likely to have a negative impact on HOKA's business, which has been growing rapidly in recent years. HOKA's success has been driven by its high-end running shoes and trail running shoes, which have gained popularity among outdoor enthusiasts.

Conclusion

The downgrade of Deckers Outdoor's stock rating to Neutral by Baird is a significant development in the company's stock price. The company's high valuation and concerns over HOKA's growth prospects are likely to weigh on its stock price in the coming quarters.

Sources

[2] Baird downgrades Deckers Outdoor stock rating to Neutral on HOKA growth concerns