Baird still likes Deckers, reveals others with ‘multi-bagger potential’

Baird analyst Jonathan Komp says shares of Deckers Outdoor (DECK) roughly 10-fold rise since 2019 highlights the potential for well-positioned, growing footwear brands. Breaking down Deckers’ 50% compounding return since 2019 shows earnings, which are up five-times, and valuation, which is up two-times, drivers, the analyst tells investors in a research note. The firm believes Deckers’ “premium” growth and return characteristics look sustainable, which, combined with “favorable current indicators” for its Ugg and Hoka brands, support a favorable view even with expected lower future stock returns. Baird keeps an Outperform rating on the name with a $225 price target. More broadly, the firm thinks On Holding (ONON), Amer Sports (AS), Crocs (CROX), Boot Barn (BOOT), and Planet Fitness (PLNT) “all could still have multi-bagger potential today.”