Raymond James sees further momentum in Crocs
Crocs (NASDAQ:CROX) shares were lifted to outperform from Market Perform at Raymond James on Friday, with analysts assigning the stock a $110 price target.
Analysts told investors in a note that their firm is a lot more comfortable with the company's risk/reward now.
«We believe the stock is oversold (CROX -31% vs S&P Retail -11% over the last 3 months), and risk/reward is now favorable given a highly discounted P/E of ~6.5x (5-year average 16x) and EV/EBITDA of ~6x (5-year average 11.5x),» they explained.
«Crocs (75% of revenue) surprised to the upside in 1H and we see further momentum (Crocs remains strong based on our Google Trends and mobile app data checks), including attractive overseas opportunity.»
The analysts also noted that while HEYDUDE’s challenges are well-known, the bear narrative is largely in the stock. In addition, Raymond James believes that despite the recent challenges, CROX maintains excellent operating margins that likely have upside potential.
Crocs shares are up more than 4% at the start of Friday's session.
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