UBS Identifies Deckers Outdoor as a High-Growth Opportunity

2025-09-02 companies

New York, Tuesday, 2 September 2025.
UBS projects Deckers Outdoor, owner of Hoka, could see a stock rally up to 34% due to strong demand and effective marketing, highlighting its potential in the expanding sneaker market.

UBS’s Optimistic Forecast for Deckers Outdoor

On September 1, 2025, UBS released a report identifying Deckers Outdoor Corporation (NYSE: DECK), the parent company of the Hoka sneaker brand, as a ‘significantly underappreciated growth stock.’ The investment firm projects that the company’s stock could rise by up to 34% due to robust consumer demand and effective marketing strategies. This optimistic outlook is set against the backdrop of a burgeoning global sneaker market, which presents lucrative opportunities for investors in the sector [1].

Market Dynamics and Deckers’ Strategic Position

The global sneaker market has been experiencing substantial growth, driven by increasing consumer preference for comfortable and stylish footwear. Deckers’ strategic focus on innovative product lines, particularly through its Hoka brand, positions it well within this expanding market. The Hoka brand, known for its enhanced cushioning and stability, originally catered to ultra-runners but has since gained broader appeal. This expansion is a key factor contributing to UBS’s positive forecast for Deckers [1][2].

Financial Health and Market Performance

Deckers Outdoor Corporation boasts a market capitalization of $17.74 billion and a price-to-earnings (P/E) ratio of 18.35, which is relatively low compared to the market average. The company’s earnings per share (EPS) are expected to grow by 12.05% from $5.89 to $6.60 in the coming year. With a consensus rating of ‘Hold’ from analysts, the stock has been characterized as an attractive investment opportunity owing to its financial stability and growth potential [3][4].

Implications for Investors

UBS’s identification of Deckers as a growth stock underscores the potential for significant returns in the footwear industry. Investors are advised to consider the company’s strong financial metrics, including its robust balance sheet and high sales growth rates, particularly from the Hoka brand. The company’s ability to navigate market challenges and capitalize on growth opportunities makes it a compelling option for those seeking exposure to the expanding sneaker market [5][6].

Sources

Deckers Outdoor Corp growth stock