UPDATE: Wunderlich Initiates Coverage On Deckers Outdoor Corp

Wunderlich Securities initiated ocverage on Deckers Outdoor Corp (NASDAQ: DECK) with a Buy rating and $121 price target Wednesday.

Analyst Danielle McCoy felt that the company has the “right product, the right mix, and the right strategy.”

Deckers has well known brands such as UGG, Teva, Sanuk and HOKA ONE ONE. The company has been investing in its retail platform and expanding its direct-to-consumer business to drive sales of its brands while expanding seasonal offerings.

McCoy noted that the UGG line has seen lower raw material costs and expanding margins. The lower input costs and appealing growth profile deserve a premium multiple according to McCoy.

The $121 price target assumes a 21x EPS estimate of $5.76 for FY 2016.

Deckers Outdoor Corp closed at $97.18 on Tuesday.