Deckers Outdoor has suffered losses recently, and Bank of America thinks there’s more upside to come. Analyst Christopher Nardone reinstated Deckers Outdoor coverage with a buy rating, saying the footwear company has a strong portfolio of brands led by Hoka and Ugg that should help the stock outperform. “We view DECK as a high-quality stock with an attractive growth trajectory led by HOKA, where we see a strong line of sight for continued market share gains (recently surpassing $1.1bn in TTM sales),” Nardone wrote in a note on Tuesday , calling the stock “a rare, consistent compounder.” “UGG, the company’s largest business today, cannot be overlooked as it is a high-margin, strong cash-flow business that should continue to help fund HOKA’s growth and has carved its own path to market share gains,” Nardone wrote. The analyst’s $425 price objective implies an upside of about 21.5% from Monday’s closing price of $349.93. Deckers has been on fire over the past six months, surging 31.7%, while the S&P 500 is down 6.3% during that time. A rising inflationary environment could affect Deckers in the near term if it leads to more promotions to clear excess inventory, but footwear has so far been more protected from promotional hikes, according to the analyst. Hoka is the “crown jewel” in the Deckers portfolio with a “clear trajectory for growth” as more consumers learn about the brand, according to the note. Analysts estimate that the brand’s revenue will double to $2.2 billion by fiscal year 2025 and see it account for about 85% of Deckers’ total enterprise value. “We see additional growth opportunities outside of the niche running category and expect HOKA to continue to gain traction with non-core runners,” the note said. Separately, analysts expect Ugg to be “not just a pandemic winner” and that it will continue to gain market share from here. — CNBC’s Michael Bloom contributed to this report.