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Investing.com - UBS raised its price target on Crocs (NASDAQ:CROX) to $110.00 from $105.00 on Monday, while maintaining a Neutral rating on the footwear company’s stock. According to InvestingPro data, Crocs currently trades at a P/E ratio of 6.5 and maintains impressive gross profit margins of 59.2%, suggesting potential value opportunity.
The price target adjustment comes as UBS noted mixed fundamental trends for Crocs during the second quarter of 2025, based on the firm’s market checks.
UBS expects Crocs to deliver second-quarter results approximately in line with consensus estimates, but anticipates the company will not provide third-quarter or full-year 2025 guidance due to uncertainty related to tariffs.
The investment firm believes Crocs’ upcoming earnings report may not significantly impact Wall Street’s earnings per share estimates or the stock’s price-to-earnings ratio under its base case scenario.
The options market is pricing in a potential move of plus or minus 10.9% around Crocs’ earnings event, slightly higher than the historical average movement of plus or minus 10.5%, according to UBS.
In other recent news, Crocs, Inc. reported a strong first quarter in 2025, with international revenue rising 12.3% on a foreign exchange neutral basis. The company, however, retracted its full-year guidance due to uncertainties in tariffs and consumer demand. A positive development emerged with a substantial reduction in tariffs on Chinese goods, which were reduced from 145% to 30%. Analysts from Williams Trading upgraded Crocs stock to a Buy rating, raising the price target to $135 from $83, attributing the upgrade to the strong quarterly performance and better-than-expected sales of the HEYDUDE brand.
Meanwhile, Stifel analysts maintained their Buy rating on Crocs, setting a price target of $127, and highlighted the robust first-quarter performance driven by international sales and margin growth. Stifel also noted the promotion of Terence Reilly to Executive Vice President, Chief Brand Officer, emphasizing his extensive experience in brand building. Piper Sandler reaffirmed their Overweight rating on Crocs with a price target of $120, despite concerns over potential order cancellations and the lack of annual guidance. These developments reflect the ongoing strategic shifts and market conditions impacting Crocs, as the company navigates tariff changes and leadership transitions.
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