Pivotal Research analyst Mitch Kummetz maintained a Hold rating on Crocs (NASDAQ: CROX) today and set a price target of $14. The company’s shares closed yesterday at $15.67, close to its 52-week high of $17.44.
Kummetz wrote:
“We’re modeling 1Q sales at the high end of guidance as we suspect that CROX came into the quarter with a strong spring order book. We have less conviction on the year as a whole, as 2Q is the company’s biggest sales/EPS quarter; it is also a reorder-driven quarter, and recent unfavorable weather has not been a favorable backdrop for reorders. For 1Q18, CROX was guiding to the following Sales of $265M-$275M, GM of 49% and SG&A of $115M-$118M (including SG&A reduction plan charge). This translates into EBIT of $15M-$17M. If not for a change in inventory costing methodology (from average cost to FIFO), CROX would be guiding to a modest GM increase (vs. 49.9% ly). We are modeling sales/EPS of $274M /$0.12; consensus is $272M/$0.13. Modeling 1Q sales at high end of guidance on the strength of CROX’s spring orders With regard to wholesale (68% of 1Q17 sales), 1Q is a prebook-driven quarter, and we suspect that CROX came into 1Q18 with a strong spring order book.”
According to TipRanks.com, Kummetz is a 1-star analyst with an average return of -2.6% and a 48.4% success rate. Kummetz covers the Services sector, focusing on stocks such as Foot Locker Inc, Shoe Carnival, and Genesco Inc.
Crocs has an analyst consensus of Hold, with a price target consensus of $13.80.
Find more picks by Best Performing Analysts >>
The company has a one-year high of $17.44 and a one-year low of $5.93. Currently, Crocs has an average volume of 1.05M.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Crocs, Inc. engages in the design, development, manufacturing, worldwide marketing, and distribution of casual footwear, apparel, and accessories for men, women, and children. It operates through the following geographical segments: Americas, Asia Pacific, and Europe.
