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Investing.com - Stifel raised its price target on Crocs (NASDAQ:CROX) to $90.00 from $85.00 while maintaining a Hold rating following the company’s third-quarter 2025 results. According to InvestingPro data, Crocs appears significantly undervalued compared to its Fair Value, with the stock currently trading at a P/E ratio of 24.56.
The footwear company reported revenue that exceeded expectations by $38 million and adjusted earnings per share that beat estimates by $0.52, showing improved balance between top-line performance and profitability. InvestingPro data highlights Crocs’ impressive gross profit margin of 59.36% in the last twelve months, reinforcing the company’s strong profitability profile.
Despite a 9% year-over-year decline in North America revenue, Crocs managed to increase gross profit dollars in the region, demonstrating stability in its core domestic business.
Stifel noted that new cost-cutting initiatives support management’s outlook for operating leverage in calendar year 2026, though the firm believes Crocs’ long-term profit growth will depend on a return to sustainable revenue growth. The company maintains a strong financial position with an overall financial health score of "GREAT" according to InvestingPro analysis.
The investment bank expects year-over-year declines to continue through the first half of 2026 and considers the current discount valuation warranted, while acknowledging the company’s above-average profitability and capital returns, including the repurchase of 4.3% of outstanding shares during the quarter. InvestingPro identifies that management has been aggressively buying back shares, with the company generating a substantial 18% free cash flow yield. Discover 8 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report available for Crocs and 1,400+ other US equities.
In other recent news, Crocs is preparing for its third-quarter earnings report, with UBS maintaining a Neutral rating and an $85 price target. UBS analysts have expressed concerns about the company’s North American revenue growth, describing it as "lackluster." Meanwhile, Needham has raised its price target for Crocs to $100, maintaining a Buy rating, following the announcement that CFO Susan Healy will resign but continue as an advisor until the end of October. On the other hand, KeyBanc Capital Markets has lowered its price target to $95 from $120, citing outlook concerns despite describing the recent earnings report as "decent."
The company also launched a new advertising campaign featuring actress Sydney Sweeney for its HeyDude brand. This campaign aims to connect with younger consumers and follows Sweeney’s previous collaborations with HeyDude. The recent developments highlight varied analyst opinions and strategic marketing efforts by Crocs amidst financial performance scrutiny.
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