By Sam Boughedda
Piper Sandler analysts raised the firm's price target on Deckers Brands (NYSE:DECK) to $535 from $485 per share, maintaining an Overweight rating on the stock in a note to clients Tuesday.
The upgrade follows the firm's teens survey, which showed strength across both UGG and HOKA.
"UGG moved into the top 10 footwear ranking supporting our thesis that newness at UGG is underpinning renewed brand heat," wrote the analysts. "Additionally, HOKA gained share with teens in athletic footwear, and we believe there is further opportunity within lifestyle."
Focusing on UGG, they revealed that the brand's mindshare is the highest they have seen in their survey since 2015.
"UGG took a jump to the No. 7 favorite footwear brand (No. 5 among female teens) compared to No. 19 last Spring. Notably, UGGs were also the No. 2 top fashion trend among UI females, up from No. 14 in Spring 2022," they explained. "This supports our thesis that we outlined in our initiation that newness at UGG, including styles such as Ultra Mini Platform and Tazz, has created renewed brand heat."
Meanwhile, HOKA "continues to gain share and held its place within the top 5 athletic footwear brands."
"This Spring, HOKA was the No. 4 favorite athletic footwear brand among both UI and AI teens with share gains led by female teens where HOKA was the No. 3 favorite athletic footwear brand," the analysts added. "HOKA increased mindshare within athletic footwear by ~115 bps among UI teens and by ~170 bps among AI teens Y/Y. Additionally, HOKA was the No. 19 favorite overall footwear brand up from No. 25 last Spring, exemplifying the opportunity for HOKA within broader lifestyle footwear as On Running ranked No. 12 overall."
Piper Sandler sees topline upside for both brands compared to consensus numbers for FY24.