Shares of footwear maker Crocs (NASDAQ:CROX) trended higher in Friday’s trading after investment firm Raymond James upgraded the stock to Outperform from a previous Market Perform. Raymond James also assigned the stock a $110 price target.
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In a note to investors, analysts stated that their firm is now much more comfortable with the company’s risk/reward ratio, stating that the stock is oversold with a discounted P/E ratio of roughly 6.5x compared to the 5-year average of 16x.
Furthermore, the analysts asserted a positive outlook on Crocs’ operating margins and fresh cash flow despite difficulties. In particular, the company has struggled to integrate HeyDude’s identity into its own and build a separate leadership team. They added the robust margins and cash flow could position the company for rapid debt repayment and accretive buybacks.
Is CROX Stock a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on CROX stock based on four Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average CROX price target of $128 per share implies a 49.6% upside potential.