Sterne Agee CRT Sees Crocs China Growth Turning Around, Upgrades Stock To Buy

Shares of Crocs, Inc. CROX surged over 30 percent following a strong earnings report Tuesday morning. Just after the lunch hour, Sterne Agee CRT upgraded shares from Neutral to Buy citing evidence of a turnaround being underway.

Analyst Sam Poser said Crocs management has improved execution on deliveries for the spring product line. Inventories management have improved also, noting Total Global Same-Store Sales growth of 3.1 percent along with positive same-store sales from all other regions.

Poser also made note of Crocs current management qualifications: "With the exception of John Duerden in 2009, Crocs has not had a management team with footwear expertise until now."

He remains bullish on management's prospects in lieu of the team's extensive footwear experience, coupled with the momentum already underway in improving execution and profitability growth. Poser finished his upgrade note saying, "China business should return to growth in 2H16."

Shares of Crocs recently traded $10.20, up 32 percent on the day.