Needham analyst Tom Nikic has maintained their bullish stance on CROX stock, giving a Buy rating yesterday.
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Tom Nikic has given his Buy rating due to a combination of factors that suggest potential for Crocs’ stock. Despite not having a strong third quarter in absolute terms, Crocs outperformed its guidance and provided a fourth-quarter outlook that was less negative than anticipated, which is a positive sign. Although Crocs North America is still dealing with macroeconomic challenges and the HeyDude brand requires significant improvements, there is an indication that the numbers may have reached their lowest point. Additionally, the stock’s valuation remains attractive, trading at 7x-8x the estimated earnings per share for fiscal year 2026.
Furthermore, the company’s quarterly revenue decline of 6%-7% was better than the expected drop of 9%-11%, and the earnings per share of $2.92 significantly exceeded the consensus estimate of $2.36. Crocs also provided guidance for the fourth quarter that surpassed market expectations, forecasting earnings per share between $1.82 and $1.92 compared to the consensus of $1.74. These factors collectively contribute to the Buy rating, as they indicate potential for future growth and an appealing valuation.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Buy with a $97.00 price target.