Crocs initiated with a Sell at Goldman Sachs

Goldman Sachs initiated coverage of Crocs (CROX) with a Sell rating and $88 price target Strong execution could sustain momentum for sportswear and footwear brands that have driven significant market share gains over the past few years, but the firm believes accelerating competition and shifting consumer preferences make for “a more muted near-term backdrop for the industry overall,” the analyst tells investors. While “constructive” on Crocs’ differentiated marketing and innovation capabilities, the firm sees risk of normalizing demand for the company’s classic clog that will temper domestic growth momentum and limit the pace of international expansion, the analyst added.