Williams Capital Upgrades Crocs (CROX) to Buy, 'Euphoria as The White Lotus Blooms'

Williams Capital analyst Sam Poser upgraded Crocs (NASDAQ: CROX) from Hold to Buy with a price target of $163.00 (from $135.00).

The analyst comments "Upgrading CROX from Hold to Buy, raising PT from $133 to $163, and raising estimates. The announcement yesterday that actress & producer, Sidney Sweeney was engaged as HEYDUDE's Dude and brand ambassador and global spokesperson. We believe that the counterintuitive addition of Ms. Sweeney will successfully attract young consumers and bring needed attention to the HEYDUDE brand. We wonder if Jeff Bridges will join in on the fun. We expect that HEYDUDE's agreement with Ms. Sweeney goes, at least, through 2025. We are increasing our FY24 & FY25 HEYDUDE revenue estimates from $859.5M (-9.5%) to $873M (-8%). Guidance calls for HEYDUDE FY24 revenue to decrease 8% to 10%. We are confident that CROX' history of having its long term brand marketing drive shorter term positive results will begin to be manifested at HEYDUDE. At the same time, it remains essential that the marketplace is clean a pull model is put in place for both Crocs and HEYDUDE. We believe it's essential for the sales and merchant teams for both brands to fully embrace the data analytics in making allocation and distribution decisions, and stop the MAP holidays within core styles and silhouettes. It's clear, based on the review spring '25 product we saw in Atlanta that offerings for both brands are becoming more focused. The new Crocs' Echo Wave Mule ($70) and Echo Surge Sneaker ($70) are likely to perform well within the athletic specialty channel.Also the return of the Bae platform clog will likely drive sales. The recent introduction of the Wally and Wendy Comf ($85), and updated Wally and Wendy styles from HEYDUDE have promise, as long as demand is accurately planned they are properly allocated. Sidney Sweeney should drive some increased demand. The increased focus on HEYDUDE may further pressure Vans (VFC-Sell-$10 PT) and other canvas casual footwear brands in the near term."

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 $140.60 yesterday.

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