Jefferies Raises Price Target on Deckers (DECK)

Jefferies & Company is out with a research report this morning, where it reiterates its Buy rating on Deckers Outdoor DECK; it has a $90.00 price target on the stock, up from $75.00. The Jefferies analysts said that, following management's 2011 UGG product preview, they believe that brand momentum remains strong; all signs point to 2010 being UGG's 13th consecutive year of double-digit sales growth. The analysts also noted the company's announcement that it would be partnering with Tom Brady for a men's marketing initiative. As for valuation, the analysts remarked, “DECK trades at ~18x forward EPS and 10x EV/EBITDA. These metrics are in line with the company's five-year history. Our price target reflects a premium multiple as justified by a stronger growth profile and upward EPS bias. We arrive at $90 using a blended average of 20.5x P/E and 12x EV/EBITDA.”