Deckers(DECK) The Motley Fool·2024-10-07 17:18Core Viewpoint - Deckers' stock has been downgraded by Seaport Research from buy to neutral, indicating reduced upside potential due to moderating momentum for its brands Hoka and UGG [2] Group 1: Analyst Downgrade - Seaport Research lowered Deckers' rating, citing less upside potential after recent gains [2] - The downgrade was influenced by a decrease in interest for Hoka and UGG during the back-to-school season, as indicated by Google Trends data [2] - Other running shoe brands, such as Asics and Brooks, are regaining market share, further impacting Deckers' outlook [2] Group 2: Sales Performance - Hoka sales increased by 59% to 545 million, suggesting potential stability [3] Group 3: Competitive Landscape - Nike is regaining momentum in the running category, which may affect Hoka's market position [4] - Other brands are likely responding to Hoka's significant growth in recent years, indicating increased competition [4] Group 4: Valuation and Future Outlook - Deckers' stock is considered reasonably valued with a price-to-earnings ratio of 30 [5] - The sustainability of Hoka's strong performance is crucial for Deckers' success moving forward [5] - It remains uncertain if the data points referenced by Seaport are significant enough to alter the current momentum [5]