UPDATE: Imperial Capital Raises PT on Crocs After Blackstone Investment

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In a report published Tuesday, Imperial Capital analyst Lee Giordano maintained an In-Line rating on Crocs, Inc.
CROX
, raising the target price from $14.00 to $16.00. According to the report, following the recent partnership between CROX and Blackstone, Blackstone will be issuing $200M convertible preferred earmarked for share repurchase. A search for the next CEO of CROX is underway as the ten year President and CEO has recently retired. “We anticipate an increased focus on earning growth and profitability, a likely more moderate rate of growth of its own retail stores, and increased efforts to improve financial performance in the Americas and Japan,” the report said. “While there is still uncertainty surrounding the long-term strategy and details around how the company plans to improve profitability, we believe the partnership with Blackstone points Crocs in the right direction.” It is estimated that 4Q3 pro forma EPS of a loss of $0.20 (GAAP loss of $0.23), which does not assume any buybacks or any effect from the convertible issuance (expected closing in 1Q14), the report said. CROX closed Monday at $16.25 with shares up 21.08%.
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Posted In: Analyst ColorPrice TargetAnalyst Ratingsimperial capitalLee Giordano
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