Crocs stock upgraded to ‘strong buy’ at Raymond James

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on Nov 28, 2023
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  • Raymond James sees upside in Crocs Inc to $115 per share.
  • Analyst Rick Patel explained his bullish in a research note today.
  • Crocs stock has already gained 30% since November 13th.

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Crocs Inc (NASDAQ: CROX) has already gained about 30% in a couple of weeks but a Raymond James analyst is convinced that the stock is not out of juice just yet.

Crocs stock could climb further to $115

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Rick Patel upgraded the footwear company to “strong buy” and added it as well to his list of “current favourites” on Tuesday. His $115 price objective suggests another 15% upside.

The analyst is constructive on Crocs stock partially because the management lowered its future outlook for “HEYDUDE” earlier this month. His research note reads:

A sizable guide down of HEYDUDE [was] a significant de-risking event. The stock being higher since then shows how low the bar was for CROX and we see further upside ahead.

Note that Crocs topped $1.0 billion in revenue in its recently reported quarter.

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Crocs will improve its financial results in 2024

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Rick Patel likes Crocs stock as its current valuation signals attractive setup for 2024.

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The Raymond James analyst expects the Nasdaq-listed firm to improve its per-share earnings and deliver “strong and durable” operating margins as it pays down debt and buys back stock moving forward.

At less than eight times earnings, he’s convinced that $CROX is currently trading at a deep discount “given our expectation of moderate revenue growth”.

Crocs now sees up to a 6.0% annualised growth in HEYDUDE this year versus up to 16% it had guided for earlier. Patel expects the U.S. firm to easily meet Street estimates in FY24 as well.

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