Deckers Outdoor rises after analyst ups price target to $100

theflyonthewall.com

Footwear maker and retailer Deckers Outdoor (DECK) is advancing after an analyst increased his price target on the shares to $100 from $65 in a note to investors earlier today. WHAT'S NEW: Decker's earnings should be boosted by falling sheepskin prices this year, Jefferies analyst Randal Konik wrote. Sheepskin accounts for about 25% of the direct costs that Decker incurs in order to make its products, and supply constraints on the commodity have eased, Konik explained. Decker's earnings per share should gain 35c-40c as a result of sheepskin price declines this year, predicted the analyst. Moreover, Decker's UGG brand continues to be a "core staple" product and Decker offers the best risk/reward ratio of any retail stock, Konik contended. WHAT'S NOTABLE: Decker's stock is up 36% in 2013, but it's still down 14% versus its level one year ago. TODAY'S PRICE ACTION: In early trading, Deckers jumped $2.50, or 5%, to $55.10.

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