Crocs (NASDAQ:CROX)' shares have seen a 14% increase from their November lows but are considered by Piper Sandler to be the most undervalued stock they cover, trading at approximately 9 times the firm's conservative earnings estimate for 2025. The analysis highlighted that while the market might favor a sale of the HEYDUDE brand within the year, which could provide a significant boost to the company's EBIT margin, Crocs' current valuation does not rely on any potential turnaround from HEYDUDE. This view aligns with InvestingPro's assessment, which indicates the stock is currently undervalued, trading at just 7.9x earnings with a 15% free cash flow yield. InvestingPro subscribers can access 10+ additional exclusive insights about Crocs' valuation and financial health in the comprehensive Pro Research Report. This view aligns with InvestingPro's assessment, which indicates the stock is currently undervalued, trading at just 7.9x earnings with a 15% free cash flow yield. InvestingPro subscribers can access 10+ additional exclusive insights about Crocs' valuation and financial health in the comprehensive Pro Research Report.
Crocs' shares have seen a 14% increase from their November lows but are considered by Piper Sandler to be the most undervalued stock they cover, trading at approximately 9 times the firm's conservative earnings estimate for 2025. The analysis highlighted that while the market might favor a sale of the HEYDUDE brand within the year, which could provide a significant boost to the company's EBIT margin, Crocs' current valuation does not rely on any potential turnaround from HEYDUDE. This view aligns with InvestingPro's assessment, which indicates the stock is currently undervalued, trading at just 7.9x earnings with a 15% free cash flow yield. InvestingPro subscribers can access 10+ additional exclusive insights about Crocs' valuation and financial health in the comprehensive Pro Research Report.
Crocs' shares have seen a 14% increase from their November lows but are considered by Piper Sandler to be the most undervalued stock they cover, trading at approximately 9 times the firm's conservative earnings estimate for 2025. The analysis highlighted that while the market might favor a sale of the HEYDUDE brand within the year, which could provide a significant boost to the company's EBIT margin, Crocs' current valuation does not rely on any potential turnaround from HEYDUDE.
In other recent news, Crocs Inc. has seen a series of adjustments in analyst outlooks, with BofA Securities reducing its price target to $144 from $147, retaining a Buy rating. This adjustment was due to anticipated impacts on Crocs' first quarter earnings per share (EPS) from increased Selling, General & Administrative expenses and updated foreign exchange rates. The firm revised its first quarter EPS estimate for Crocs downward by $0.23 to $2.57. Despite these adjustments, BofA Securities expects Crocs' margins to begin improving in the second quarter and even more significantly in the second half of the year.
In addition to BofA Securities, Piper Sandler has reiterated an Overweight rating on Crocs, maintaining a price target of $125.00, while Williams Trading has reduced its price target to $126 from $140 but retained a Buy rating. Notably, Crocs has expanded its senior revolving credit facility to $1 billion, marking a $250 million increase, a move expected to bolster future growth initiatives.
The company reported a 2% year-over-year increase in its third quarter 2024 earnings, with consolidated revenues reaching $1.1 billion. Lastly, Needham initiated coverage on Crocs with a Buy rating, while Loop Capital downgraded Crocs from Buy to Hold, reducing the price target to $110. These are some of the recent developments for Crocs.
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