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Analyst: UGG maker's stock could hit $100

March 28, 2013: 1:27 PM ET

Does sheepskin ever go out of style?

Shares of UGG boot-maker Deckers Outdoor jumped Thursday after analysts at Jefferies said the stock is headed for $100 a share.

Deckers (DECK) stock was up nearly 7% in midday trading to about $56 per share.

The rally came after Jefferies issued a glowing report on the company, saying it expects sheepskin prices to fall this year after rising about 80% in the past two years. The investment bank raised its price target from $65 and said Deckers remains its "top pick."

Deckers shares fell nearly 50% last year, but the stock has come roaring back in 2013. Shares are up 40% year to date, making the California company one of the best performers in a strong first quarter for stocks.

Stocks that were down 50% in 2012, are among the best performers in Q1, 2013 $BBY $HPQ $DECK

Deckers has been struggling with waning sales of its Australian-style sheepskin boots and rising prices for the main material used to make UGGs. The company warned earlier this month that earnings will fall in the first quarter, but it also predicted that sales of the UGG line will increase 4% this year.

Yet some traders on StockTwits remain skeptical.

Wow, talk about a headline-grabbing price target. Jefferies raising their PT on $DECK to $100. Party like it's 2011.

$DECK one helluva risky bet for some. For others millions to be made in coming weeks. Wild times are coming.

Others saw an ulterior motive in Jefferies' bullish call, suggesting the report was designed to force traders to unwind bets the stock would fall.

"@Blink: $DECK Jefferies raise PT to $100" - only100, not 200 ha? Jefferies continues their typical MO. Looking for short squeezes.

$DECK nice pump upgrade still think uggs are ugly but ride the wave

Meanwhile, Jefferies wasn't the only shop to upgrade Deckers stock Thursday.

Analysts at Sterne Agee hiked their price target for the stock to $65 from $52.25. The upgrade is based on UGG Pure, which is a process that replicates the fuzzy feel of sheepskin.

UGG Pure should help Deckers cut costs and create a more stable pricing structure for the brand going forward, according to Sterne Agee.

UGG Pure Could Reduce Costs for Deckers Outdoor ($DECK) - Sterne Agee

As if the upgrades weren't enough, Deckers also received an endorsement from fake wrestling legend Hulk Hogan.

$DECK I wear Uggs...even on my boat.

Of course, this is probably not the real Hulk Hogan. But it does sounds like something he would say.

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Ben Rooney
Ben Rooney
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Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news. Follow Ben on Twitter: @ben_rooney

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