Analyst: UGG maker's stock could hit $100March 28, 2013: 1:27 PM ET
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.
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.
Others saw an ulterior motive in Jefferies' bullish call, suggesting the report was designed to force traders to unwind bets the stock would fall.
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.
As if the upgrades weren't enough, Deckers also received an endorsement from fake wrestling legend Hulk Hogan.
Of course, this is probably not the real Hulk Hogan. But it does sounds like something he would say.