Crocs: Undervalued Stock with Strong Growth Potential and Positive Market Trends

Needham analyst Tom Nikic has maintained their bullish stance on CROX stock, giving a Buy rating on April 25.

Tom Nikic has given his Buy rating due to a combination of factors that suggest Crocs’ stock is undervalued and presents a favorable investment opportunity. Despite adjusting earnings estimates downward to account for tariffs, Nikic believes the stock remains attractively priced, trading at approximately 8 times the new EPS estimates. This valuation appears low given the company’s strong EBIT margin, which provides a buffer against earnings fluctuations.
Moreover, Nikic highlights recent positive developments, such as a robust sandal season and successful collaborations for the Hey Dude brand, which could contribute to stable revenues. If these trends continue, there is potential for the stock to experience multiple expansion over the next 6 to 12 months. Consequently, Nikic has set a 12-month price target of $118, based on a valuation of 10 times the FY26 estimated EPS.

Nikic covers the Consumer Cyclical sector, focusing on stocks such as Nike, Steven Madden, and Crocs. According to TipRanks, Nikic has an average return of 0.6% and a 39.60% success rate on recommended stocks.

In another report released on April 25, Piper Sandler also maintained a Buy rating on the stock with a $115.00 price target.