Street Calls of the Week
Investing.com - UBS has reiterated its Neutral rating and $85.00 price target on Crocs (NASDAQ:CROX), currently trading at $80.47 and down nearly 26% year-to-date, ahead of the company’s third-quarter earnings report. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model.
UBS analyst Jay Sole noted that market attention is centered on the trajectory of Crocs brand’s North America revenue growth rate, with the firm’s checks indicating "lackluster" third-quarter sales growth in this key region.
The investment bank’s conversations with investors suggest a similar market view regarding North American sales performance, while noting that Crocs reaffirmed its third-quarter guidance on September 3.
UBS expects Crocs may provide a conservative fourth-quarter earnings outlook, consistent with the company’s historical guidance patterns, and doubts the upcoming earnings report will significantly change Street estimates or investor sentiment.
The options market is pricing in a potential 7.7% share price move following earnings, below the historical average move of 10.8%, a view UBS agrees with given the balanced upside and downside potential surrounding the event.
In other recent news, Crocs has been in the spotlight with several developments. The company recently launched an advertising campaign featuring actress Sydney Sweeney for its HeyDude brand, which aims to attract younger consumers. In terms of financial projections, UBS has maintained a Neutral rating on Crocs, citing growth concerns in the North American market. Meanwhile, Needham has raised its price target for Crocs to $100, maintaining a Buy rating, following the announcement of CFO Susan Healy’s resignation.
KeyBanc Capital Markets has lowered its price target for Crocs to $95, despite describing the company’s recent quarterly earnings report as "decent." Additionally, BofA Securities has reduced its price target to $99 due to what it called "disappointing" third-quarter guidance, though it maintains a Buy rating, suggesting potential improvements beyond the third quarter. These developments indicate a mixed outlook for Crocs, with varying analyst opinions on its future performance.
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