Goldman Sachs Downgrades Crocs (CROX) to Neutral
Goldman Sachs downgraded Crocs (NASDAQ: CROX) from Buy to Neutral with a price target of $14.00 (from $19.00). Analysts noted execution risk and lack of catalysts.
"The miss was attributable to steeper discounting as in-line sales came at the expense of weak gross margins," said analyst Taposh Bari.
"We thought Spring/Summer 2013 – CROX’s core selling season – served as a catalyst for better execution and a stock re-rating. Our view was supported by innovative product launches, marketing support and seemingly conservative guidance. We ultimately underestimated the inherent degree of volatility and lack of visibility into this increasingly complex business."
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 $16.98 yesterday, with a 52 week range of $12.00-$18.60.
"The miss was attributable to steeper discounting as in-line sales came at the expense of weak gross margins," said analyst Taposh Bari.
"We thought Spring/Summer 2013 – CROX’s core selling season – served as a catalyst for better execution and a stock re-rating. Our view was supported by innovative product launches, marketing support and seemingly conservative guidance. We ultimately underestimated the inherent degree of volatility and lack of visibility into this increasingly complex business."
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 $16.98 yesterday, with a 52 week range of $12.00-$18.60.