UPDATE: Wedbush Downgrades Crocs on Less Favorable Risk/Reward

In a report published Monday, Wedbush analyst Corinna Freedman downgraded Crocs CROX from Outperform to Neutral, but reiterated the $18.00 price target.

In the report, Wedbush noted, “Downgrading to NEUTRAL from OUTPERFORM as CROX nears our $18 price target and the risk/reward appears less favorable. We maintain our previous target and our longer-term outlook, however we believe that the near-term risk/reward has become slightly less favorable. We believe the shares adequately price-in expectations for 2Q as we believe that results will be in line with management's guidance, albeit at the low end, however, we are concerned that 2H order book commentary could pressure sentiment as industry commentary regarding fall orders has been cautious.”

Crocs closed on Friday at $17.07.