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.

Check out other analyst stock ratings.

“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.

See Also: Tesla Spinning Its Wheels: Snow-Challenged Cybertruck Gets Rescued By Rival Pickup

Photo: Shutterstock

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