BofA Securities has slashed its Crocs stock (CROX) price target, even after the firm beat Wall Street estimates for Q3 earnings. The casual footwear company reported notable sales and revenue growth but shares still plunged today. BofA Securities has lowered its price target from $179 to $149, though it maintains a Buy rating.
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Does this mean that investors should be approaching CROX stock with caution? Let’s take a closer look at these recent events and assess how they are likely to impact share prices in the near future.
Why Is Crocs Stock Down Today?
Crocs stock is likely down today due to two factors. Firstly, the BofA price target reduction likely isn’t helping. But the Q3 earnings report wasn’t all good news. It also revealed weakness with the Hey Dude brand, a footwear acquisition that doesn’t seem to be paying off. This drags on Crocs’ losing streak, which has been unfolding for months, with shares falling 15% over the quarter.
As BofA is maintaining a Buy rating, its experts clearly aren’t too concerned about the company. As The Fly reports, “Management lowered expectations by communicating Q1 will likely be soft and messaging that operating margins will be lower in 2025,” the analyst tells investors in a research note. BofA thinks the bar has been reset and that Crocs “can return to its prior beat/raise trajectory.”
The combination of this ultimately positive outlook and overall positive earnings suggest that CROX stock is likely to bounce back in the fairly near future. Even with the problems Hey Dude may be facing, the company is still well-positioned to grow, especially as the U.S. moves into the holiday shopping season.
Is Crocs Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on CROX stock based on 11 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 28% rally in its share price over the past year, the average CROX price target of $167.10 per share represents 50% upside potential from current levels.
Last week, Mitch Kummetz of Seaport Global maintained a Hold rating on CROX stock. He currently does not have a price target issued for it, though the new BofA price of $149 implies an upside potential of 31%.
