Analyst Jay Sole of UBS maintained a Hold rating on Crocs, retaining the price target of $85.00.
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Jay Sole has given his Hold rating due to a combination of factors affecting Crocs’ performance. The company’s recent earnings report acted as a negative catalyst, contributing to a significant decline in stock value compared to the broader market. A major concern is the ongoing challenges in Crocs’ North America business, particularly in achieving sustainable sales growth.
Despite efforts to diversify beyond its classic clog product, Crocs has faced difficulties in expanding into new categories like sandals, which are seen as a potential growth area. Additionally, the brand’s collaboration strategy, once a strong growth driver, appears to have lost its effectiveness. Given these challenges and the current macroeconomic environment, Jay Sole believes that while the stock’s valuation reflects these issues, a significant turnaround may not be imminent, justifying the Hold rating.
According to TipRanks, Sole is a 4-star analyst with an average return of 6.2% and a 50.92% success rate. Sole covers the Consumer Cyclical sector, focusing on stocks such as Macy’s, Kohl’s, and Tapestry.
In another report released on September 2, Stifel Nicolaus also reiterated a Hold rating on the stock with a $85.00 price target.