10:10 AM EDT, 05/24/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $125 to $850, based on 28.3x our FY 25 EPS estimate and above the company's one-year average forward P/E multiple and well above peers, reflecting our view the company deserves a higher multiple due to significant growth and operating performance. We raise our FY 25 EPS estimate by $1.00 to $30.00 and initiate FY 26's at $33.00. DECK posted normalized Q4 EPS of $4.95 vs. $3.46, $2.01 above consensus estimates on revenues of $960M vs. $792M and $71M above estimates. By brand in Q4, HOKA revenues increased 34.0%, UGG increased 14.9%, Teva declined 15.6%, Sanuk declined 39.1%, and Other brands were flat. Q4 gross margin expanded 620 bps Y/Y to 56.2%. Shares currently trade above 33x the company's FY 25 guidance and well above its historic average and peers. We believe the company continues to execute and love the growth from its HOKA brand. However, we believe shares are overvalued given the guide for a small increase to EPS in FY 25 and elevated forward multiple.