Stifel Upgrades Crocs (CROX) to Buy
Stifel analyst Jim Duffy upgraded Crocs (NASDAQ: CROX) from Hold to Buy with a price target of $130.00 (from $140.00).
The analyst comments "We are opportunistically upgrading to BUY with a 12 mos. TP of $130 (10X FY24 EPS of $13.02). FY2Q results were a mixed bag but positives outweigh the negative and the -14.6% reset in shares presents an opportunity. Market disappointment reflects the shortfall from HEYDUDE wholesale (~15% of global revenue) but looks past positive developments for the Crocs brand (~75% of global revenue). Specific factors showcasing improved balance and increasing our confidence into FY24 include 1) Crocs N. America brand strength and product diversification (+13% DTC comp led by newness which will benefit wholesale in FY24), 2) Crocs international strength led by +40% DTC comp and Asia/China, and 3) debt reduction bringing net leverage <1.7X (repurchase potential $1+ benefit to FY24, just $0.40 in estimates). Profit pool diversification, improved balance sheet optionality, and a very forgiving valuation increase our confidence in risk adjusted return prospects for CROX shares."
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 $119.80 yesterday.