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On Monday, Stifel analysts maintained a positive stance on Crocs (NASDAQ:CROX) shares, reaffirming their Buy rating and a price target of $138.00. The firm’s confidence in the footwear company was expressed following discussions with Erinn Murphy, Senior Vice President of Investor Relations & Strategy at Crocs.
The recent meetings with Murphy focused on various aspects of the company’s operations and future plans. Topics included the current state of the business, the outlook for Crocs and its HEYDUDE brand leading into 2025, investment and margin expectations, the consumer and regulatory environments, and capital allocation priorities.
Stifel highlighted Crocs’ strong margin profile, evidenced by an impressive gross margin of 58.76%, solid economic returns with a 20.09% return on assets, and growth opportunities ahead. The analysts pointed out that at 6.5 times enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) based on calendar year 2025 estimates, the market may not be fully recognizing the international growth prospects and could be underestimating the contribution from the HEYDUDE brand. InvestingPro analysis reveals 11 additional key insights about Crocs’ financial health and growth potential, available to subscribers.
The firm’s analysis suggests a favorable risk/reward scenario for Crocs, leading to the reaffirmation of their Buy rating and $138 price target. The target suggests that Stifel sees significant upside potential for the stock, based on their projections and valuation metrics.
Investors and market watchers will be monitoring Crocs’ performance, particularly in international markets and the integration and growth of the HEYDUDE brand, as key indicators of the company’s ability to meet the expectations set forth by Stifel’s analysis.
In other recent news, Crocs Inc. reported a strong fourth-quarter performance for 2024, with earnings per share (EPS) of $2.52, surpassing the forecast of $2.27. The company’s revenue reached $990 million, exceeding the expected $963.96 million. This positive earnings report contributed to a surge in investor confidence. Meanwhile, BofA Securities has raised its price target for Crocs to $153, maintaining a Buy rating, citing the company’s healthy gross margins and strategic financial maneuvers like share repurchases and debt repayment. UBS also adjusted its price target for Crocs to $132 from $122, although it maintained a Neutral rating, reflecting cautious expectations for the company’s growth potential.
In a separate development, Crocs announced the resignation of its Executive Vice President and Chief Digital Officer, Adam Michaels, effective May 2025. Michaels will enter a non-compete agreement and assist in transition activities, while receiving a lump sum payment of $320,000. The company has not yet named a successor for his position. These developments come as Crocs continues to navigate the competitive footwear market, focusing on brand growth and operational efficiency.
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