UPDATE: Piper Jaffray Lowers PT to $30 on Crocs
A report from Piper Jaffray reiterates its Overweight rating and lowers its price target from $38 to $30 on Crocs (NASDAQ: CROX).
In the report, Sterne Agee writes, “Last night CROX revised FQ3 EPS guidance from $0.40 to a range of $0.31 to $0.33 on lighter than expected sales and gross margins. We believe GM rate was pressured due to channel mix in the Americas and pricing pressure in Europe. The company also announced wholesale bookings as of quarter end had risen 30% y/y, which indicates retailer and consumer demand remains robust despite macroeconomic headwinds. We have reduced our price target from $38 to $30 based on our revised estimates, but believe CROX can continue to generate 20%-plus EPS growth over the next several years through strong top line growth and margin expansion."
CROX closed yesterday at $26.64.
