Crocs (CROX) Added to Baird Fresh Pick List, Top Near Term Recovery Play

Baird analyst Jonathan Komp reiterated an Outperform rating and $120.00 price target on Crocs (NASDAQ: CROX) while adding the stock to Baird's Fresh Pick List after falling -58% year-to-date despite reporting of Revenue growth of +37% and EPS growth of +127% while projecting 2022E EPS up +28% to $10.50.

The analyst stated "The factors above have contributed to extreme current valuation metrics including 5.0X NTM P/E, 5.9X EV/EBITDA, and 13% NTM FCF yield. Notably, the current levels are at/near CROX's March 2020 COVID lows (bottomed at 6X P/E, 5X EV/EBITDA) and close to the lows set in 2008/2012 (~5-8X P/E; ~3-4X EV/EBITDA) when the brand was challenged. Further, in a theoretical scenario in which the Crocs brand falls back to 2019 levels and HEYDUDE does not grow from 2022E (we think would support >$3/share in EPS), the stock is trading at a reasonable high-teens P/E (<1X PEG using CROX's implied low-20% long-term EPS algorithm) even if assuming this Draconian earnings scenario."

For an analyst ratings summary and ratings history on Crocs click here. For more ratings news on Crocs click here.

Shares of Crocs closed at $52.35 yesterday.

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