Deckers Outdoor just downgraded at Citi, here’s why

Citi downgraded Deckers Outdoor to Neutral from Buy with a price target of $710, up from $665. The analyst increased 2024 estimates to reflect strong Ugg momentum, but believes the market “now has high expectations that are getting increasingly difficult to beat.” The Hoka brand has grown significantly in recent years, and growth potential remains notable, but it may be harder to impress the market from here, the analyst tells investors in a research note. Further, Ugg growth in fiscal 2025 may be challenging against difficult comparisons, adds Citi. As such, the firm sees a more balanced risk/reward at current share levels.