Investors should buy shares of Deckers Brands on the prospect of stronger sales due to better weather conditions this holiday season, according to Telsey Advisory Group, which raised its rating on the company to outperform from market perform.
Deckers owns UGG, Teva and other apparel brands. The company's shares are up more than 40 percent this year.
"UGG [is] still one of the most weather-sensitive/seasonal brands in our space ... and it doesn't seem like weather will be as bad as last year," analyst Kelly Chen wrote in a note to clients Monday.
"And while we are not meteorologists and not making the call that 'winter is coming,' our belief is that the weather should not be as unfavorable as it was last year because we do not have El Nino to contend with this year."