Crocs initiated with a Buy at Needham

Needham initiated coverage of Crocs (CROX) with a Buy rating and $116 price target The story “certainly isn’t clean,” but the firm thinks the stock has been overly punished in recent months with shares down almost 40% since mid-June, which results in a positively skewed risk/reward heading into 2025, the analyst tells investors. The firm struggles to envision the EPS erosion embedded in valuation, which implies earnings to be down about 20% next year, and is also encouraged by the company’s compelling talent investments this year, the analyst added.