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VIDEOCrocs Stock Getting Its Legs Back?
Piper Jaffray analysts now have a $17 price target after getting a tour of the company's North American distribution facility and a booth visit at a recent trade show.
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Piper Jaffray was out with a note yesterday (posted on the trading website Benzinga) where the analysts reiterated their Overweight rating.
The analysts said they were more positive after getting a tour of the company’s North American distribution facility as well as a booth visit at a recent trade show. They didn’t raise estimates (at least not yet) but they do have increased confidence in management’s ability to execute over the next several quarters. They like CROX as a small-cap play and have a $17 price target for the stock.
Earlier this month, CROX blew away earnings expectations, posting $0.37 a share on revenues of $228 million. Analysts were looking for just $0.22 a share and $220 million in revenues. Noteworthy is that this revenue number is a 31% increase year over year. And not only did it bring in more money, it was more efficient at it -- gross margins increased to 57.8% from 51.1%.
Stifel Nicolaus’s Jim Duffy followed with a note, as reported by the Associated Press, saying "Improving fundamentals and execution in 2010 will set the stage for compelling earnings power into 2011.”
Don’t hold your breath if you think CROX is going back to $75 a share any time soon. But as long as the company keeps innovating, branding, and executing, that $17 number could be in the rearview mirror.
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