DA Davidson Upgrades Crocs (CROX) to Buy; Favorable Risk-Reward
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Price: $137.03 +2.74%
Rating Summary:
20 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 16 | New: 12
Rating Summary:
20 Buy, 12 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 16 | New: 12
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DA Davidson upgraded Crocs (NASDAQ: CROX) from Neutral to Buy, but lowers price target from $25 to $22.
DA analyst says, "Despite estimates that may be more fluid and less precise than a month ago, CROX is financially strong (~$2.40 per share cash and no debt) and well positioned for substantial long-term growth. Moreover, the stock seems to adequately discount the majority of near-term risk, in our view. We have adjusted our valuation assumption downward, from 17x to 15x (FY12), but this still yields a price target of $22 compared to our $25 target previously."
"We still expect FY12 revenues to be up at a mid-teens rate, which should be sufficient to drive operating margin expansion. The modest reduction in our FY12 EPS estimate from $1.46 to $1.42 is based on slightly more conservative assumptions overall."
For more ratings news on Crocs click here and for the rating history of Crocs click here.
Shares of Crocs closed at $17.00 yesterday.
DA analyst says, "Despite estimates that may be more fluid and less precise than a month ago, CROX is financially strong (~$2.40 per share cash and no debt) and well positioned for substantial long-term growth. Moreover, the stock seems to adequately discount the majority of near-term risk, in our view. We have adjusted our valuation assumption downward, from 17x to 15x (FY12), but this still yields a price target of $22 compared to our $25 target previously."
"We still expect FY12 revenues to be up at a mid-teens rate, which should be sufficient to drive operating margin expansion. The modest reduction in our FY12 EPS estimate from $1.46 to $1.42 is based on slightly more conservative assumptions overall."
For more ratings news on Crocs click here and for the rating history of Crocs click here.
Shares of Crocs closed at $17.00 yesterday.
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