Shares of Crocs Inc (NASDAQ: CROX) are up roughly 10% on Tuesday after a Loop Capital analyst turned bullish on the shoe company that’s been in a freefall since late last year.
Crocs Inc could be worth $75 a share
Laura Champine upgraded Crocs to “buy” this morning and announced a price target of $75 a share that translates to more than 50% upside from its previous close. In a note to clients, she said:
Our checks point to healthy sell-through and normal discounting at the end of the quarter. We think the Hey Dude acquisition may accelerate the overall long-term growth rate and we’re seeing some success in the family channel.
Crocs spent $2.50 billion to bring “Hey Dude” – a privately owned brand of casual shoes under its umbrella in December 2021.
Crocs stocks has favourable risk/reward
Champine agrees the macro environment continues to be uncertain but likes the stock on favourable risk/reward dynamics, now that it’s down more than 60% versus the start of 2022.
Crocs sits at the heart of casual footwear – a segment that’s expected to grow rapidly at a CAGR of 5.8% through 2027. A week earlier, North Crest Asset Management also revealed to have increased its stake in CROX by nearly 106% in the first quarter.
Last month, the Broomfield-headquartered company reported market-beating results for its fiscal Q1 on strong demand. The stock trades at a PE multiple of 4.74 at present.
The post Crocs stock: Loop Capital sees a 50% upside appeared first on Invezz.
