Crocs Is an ‘Impressive Consumer Growth’ Story. The Stock Is Rising.

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Shares of Crocs were rising on Wednesday after Piper Sandler named the stock a top idea for the second year running and raised its price target on the shares.

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Analyst Erin Murphy said in a note that she views the footwear brand as “one of the most impressive consumer growth stories for many years to come.” Murphy raised his price target from $215 to $246 and maintained an overweight rating.

Shares of Crocs (ticker: CROX) rose 6.6% to $134.53 on Wednesday.

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Piper Sandler said it was raising its fiscal fourth-quarter earnings estimate on Crocs from $1.42 to $2.01 per share on the strength of the brand throughout the holiday season. The firm said Crocs “did not see a significant impact from Omicron and saw strong full-price sales and healthy traffic.”

Analysts polled by FactSet expect earnings per share of $1.71 in the fourth quarter.

Murphy also highlighted the opportunity Crocs Heydude, an Italian casual footwear brand, bought last month. “We have a high degree of confidence in Crocs’ mgmt team in executing against our playbook to drive two highly-for-profit growth brands for many years to come.”

“While there has been no shortage of investor push-back for the HeyDude deal (from deal timing and size to “fad” potential etc.), we believe there is opportunity in it,” Murphy said.

Earlier this week Crocs said it was expecting record revenue growth in 2021. The company projected $2.31 billion in revenue, compared to $1.38 billion in 2020. This reflects a roughly 67% increase in revenue in 2021, which exceeds Wall Street’s consensus call of 65%. ,

Analysts surveyed by FactSet rated the stock overweight, with an average price target of $211.11.

Write to Karishma Vanjani at [email protected]

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