Deckers rises as Jefferies upgrades to 'buy', hikes PT citing Hoka's recovery

Deckers Outdoor's shares rose as much as 4.5% to $110.71 in early trading.

The stock was up about 2% year to date up to the last close.

According to estimates compiled by LSEG, 14 of 27 brokerages rate the stock "buy" or higher, 11 rate it "hold" and two rate it "sell". Their median price target is $130.

"We think Hoka has meaningful runway for product innovation that still leads with performance and functional aspects but leans into comfort," Jefferies said.

The firm said it sees operating margin growth over time, especially as oil prices normalize.

Jefferies also said Deckers' new medium-term guidance is a "significant development" because it signals management now has better visibility on sustaining growth and maintaining margins.

Jefferies raised its rating on Deckers Outdoor to from , citing improved confidence in the recovery of brand and durable growth in brand .