Piper Jaffray Reiterates Overweight Rating On Crocs

In a report published by Piper Jaffray, Crocs' CROX domestic wholesale growth and visibility drives increased confidence.

Piper Jaffray said that it is reiterating its Overweight rating following hosting investor meetings with CROX CEO John McCarvel and interim principal financial officer Jeff Lasher. “The strength of the domestic wholesale channel is led by expanding door counts and floor space in the family footwear channel, success with new styles in the sporting goods and dept store channels, and a limited introduction of CROX product in the mass channel. We est CROX will offset a 3-5% rise in sourcing costs with a low-DD increase in ASP driven by new styles and mix shifts. We reiterate our FY11 EPS est of $1.05 and $26 price target based on 25x FY11 EPS.”

Crocs closed yesterday at $18.50.