Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Deckers Outdoor (DECK) and Skechers USA (SKX).
Deckers Outdoor (DECK)
In a report released today, Mitch Kummetz from Pivotal Research reiterated a Hold rating on Deckers Outdoor, with a price target of $172. The company’s shares closed yesterday at $176.38, close to its 52-week high of $180.76.
Kummetz said:
“We think 1Q20 was a mixed bag, but the good likely outweighed the bad, and, given DECK’s history of sand-bagged out-quarter guidance, a solid sales/EPS beat seems likely, albeit not as big as the company’s recent run rate. Starting with the bad, we believe Teva and Sanuk fell short of plan, mostly due to weak reorders, resulting from unfavorable weather. Turning to the good, we believe Hoka exceeded plan, given continued strong momentum of this brand. As far as UGG goes, we have no strong opinions of 1Q performance relative to plan. All told, we’re conflicted on this stock. On one hand, we think DECK gets too much credit for its recent UGG results, which we believe have been artificially inflated by two years of favorable weather.”
According to TipRanks.com, Kummetz is a 3-star analyst with an average return of 2.6% and a 56.7% success rate. Kummetz covers the Services sector, focusing on stocks such as Foot Locker Inc, Shoe Carnival, and Genesco Inc.
Currently, the analyst consensus on Deckers Outdoor is a Moderate Buy with an average price target of $170.50, implying a -3.3% downside from current levels. In a report issued on July 17, Wedbush also maintained a Hold rating on the stock with a $148 price target.
See today’s analyst top recommended stocks >>
Skechers USA (SKX)
B.Riley FBR analyst Susan Anderson maintained a Buy rating on Skechers USA today and set a price target of $44. The company’s shares closed yesterday at $34.84, close to its 52-week high of $35.66.
Anderson observed:
“SKX reported 2Q EPS of $0.49, better than B. Riley FBR/consensus expectations of $0.33/ $0.34 driven by revenue growth of +10.9% (+13.7% constant currency) compared to B. Riley FBR/consensus estimates of +6.3%/+7.4% and guidance of +6% to +8%. International sales continued to show strength, growing +19.8% in the quarter, while the domestic business grew +1.5%. Management noted that strength accelerated through the quarter, and felt that June’s high point was carrying into through YE based on current backlog and order activity. Accordingly, both top and bottom line guidance for 3Q19 came in ahead of Street expectations. 2Q GM fell –98 bps as promotional efforts to clear seasonal inventory in select international markets were higher in the quarter.”
According to TipRanks.com, Anderson is a 3-star analyst with an average return of 0.7% and a 41.4% success rate. Anderson covers the Consumer Goods sector, focusing on stocks such as Lululemon Athletica Inc, Turning Point Brands, and Callaway Golf.
Currently, the analyst consensus on Skechers USA is a Strong Buy with an average price target of $42.75, which is a 22.7% upside from current levels. In a report issued on July 15, Susquehanna also reiterated a Buy rating on the stock with a $37 price target.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
