Jefferies upgrades Deckers Outdoor stock on Hoka growth prospects

Investment firm Jefferies upgraded Deckers Outdoor stock from hold to buy on Monday. Analyst Blake Anderson said the company has strong growth potential over the next 12 months. Deckers owns the Hoka and UGG shoe brands. Hoka had slow sales recently because it fell behind competitors in developing new products. Anderson now sees early signs that this is changing. He expects Hoka to grow by moving into everyday lifestyle footwear. Deckers shares have risen only 4% over the past year, while the wider S&P 500 index gained 21%. Anderson also believes UGG will perform better than most investors currently expect. The upgrade shows that Jefferies believes Deckers can recover through new product development across its brands.