Deckers Outdoor (DECK) delivered solid Q1 performance, raising conviction that the stock is offering "exceptional" value, UBS said in report Friday.

"We see a very good opportunity to buy shares in a growth company we believe is significantly undervalued by the market," the report said.

The note said the company is expected to "positively" surprise the market over the near-term due to its Hoka and UGG brands growing revenue better than expected.

"We think this will cause the market to realize DECK should grow sales and EPS at +HSD%/+LDD% 5-yr," it said.

UBS kept its buy rating with a $161 price target.

Price: 95.06, Change: -1.17, Percent Change: -1.22