Why This Crocs Analyst Says Company Is Putting Its Best Foot Forward

In a recent annual survey, Crocs, Inc. CROX was cited as among the fastest-growing brands among Gen Z.

The company generated annual sales growth of 25% since 2019 and the strong momentum is likely to continue, according to BofA Securities.

The Crocs Analyst: Christopher Nardone initiated coverage of Crocs with a Buy rating and a price target of $128.

The Crocs Thesis: Although the spring 2024 order book trends are encouraging, the estimates for the company’s sales growth have come down due to wholesale uncertainty, Nardone said in the initiation note.

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“We expect continued newness and collaborations, further gains in sandals (low teens % of Crocs sales), a sticky kid’s business, and expansion in Asia-Pacific (20% of sales) to drive growth,” the analyst wrote.

“We are encouraged by the initiatives to rectify some of the strategic missteps made when rolling out the HD brand post-acquisition in Feb ’22, which included expanding distribution too quickly,” he added.

CROX Price Action: Shares of Crocs are up 0.18% to $104.79 at the time of publication on Tuesday.

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