03:45 PM EDT, 10/09/2024 (MT Newswires) -- Deckers Outdoor's ( DECK ) Hoka brand has sustained strong revenue growth in fiscal Q2, and analysts expect this to result in a $0.10 earnings per share beat for Q2 2025, UBS Securities said in a report Wednesday.

The forecast takes into account potential risks, including the possibility that the UGG brand's direct-to-consumer sales growth may fall short of expectations, UBS said, adding that "[t]his is why we see only a moderately positive upside/downside skew around the event."

UBS data suggests that the stock is heavily crowded long position, particularly in the Sportswear sector, with low short interest at 3.7%, indicating that sentiment around it is moderately bullish, UBS said.

"Industry data indicates Hoka's 2Q25 US [direct-to-consumer] observed sales increased 14% [year-over-year]," UBS said. Searches for Hoka rose 49% on a two-year average and significant growth in Germany, the UK, Japan, and Australia, while unique visitors to its global websites increased by 15% and total visitors rose 17% year-over-year, it added.

UBS maintained a buy rating on Deckers Outdoor ( DECK ) and adjusted its price target to $226 from $225.

Price: 160.81, Change: -1.13, Percent Change: -0.70