Crocs Inc. (NASDAQ: CROX) Receives Overweight Rating and $170 Price Target from Piper Sandler
Crocs Inc. received a positive outlook from Piper Sandler, as the firm resumed coverage of the footwear company with an Overweight rating and a price target of $170. Despite being 15% below its June peak, Crocs has shown resilience after its second-quarter earnings report, outperforming the S&P 500 index.
Piper Sandler highlighted Crocs's attractive valuation, trading at 9-10 times P/E based on the firm's 2025 EPS estimates, below consensus. The company is also trading at a lower EV/EBITDA multiple compared to its peers in the footwear and global brands sector.
The firm's confidence in Crocs is supported by the brand's strong performance, exceeding industry growth and leading profit margins. Despite concerns around the HEYDUDE brand, the recent hiring of Terence Reilly as the new Executive Vice President is expected to enhance brand awareness.
In recent news, Crocs posted record revenues exceeding $1.1 billion in the second quarter, with adjusted EPS rising by 12%. Williams Capital upgraded the stock to Buy, anticipating positive impacts from the new face of HEYDUDE, actress Sidney Sweeney.
Crocs reported growth in brand revenues and market share gains, particularly in China and Australia. The company plans to optimize SKU count and expand into new markets while remaining cautious about consumer spending and geopolitical factors.
Analysis:
Crocs Inc. is positioned as a competitive player in the footwear industry, with a market cap of $8.44 billion. The stock's low P/E ratio and solid financial health make it an attractive investment option. Despite downward earnings revisions, Crocs remains profitable with strong profitability indicators. Potential investors should consider the company's high Price / Book multiple and future prospects before making investment decisions.