Deckers Outdoor Corporation (NYSE:DECK) experienced an upswing in early afternoon trading on Thursday subsequent to Evercore ISI launching coverage on the footwear stock with an “Outperform” rating.

The analyst, Jesalyn Wong and team, are of the view that Deckers (DECK) stands out as a strong candidate in the sector, boasting a high-quality growth profile with a portfolio of distinctive brands maintaining robust brand momentum through various metrics. In addition to these positive growth drivers, Deckers (DECK) is also poised for margin expansion. Proprietary research by Evercore suggests that the market may be undervaluing the untapped awareness of the HOKA brand, while UGG is also exhibiting encouraging signs of brand momentum traction.

“Coupled with a supportive macro backdrop (sequential improvements in our Softlines Leading Indicator, potential rate cuts that have historically led to multiple expansion), we estimate DECK to deliver a 13% EBITDA CAGR in CY23-25E vs Cons 7% CAGR.”

Evercore has set a price target of $960 on DECK. Shares of Deckers (DECK) were up 1.90% at 1:15 p.m. on Thursday, reaching $864.25, compared to the 52-week trading range of $395.91 to $903.70.