Sterne Agee Initiates Coverage On Crocs

Sterne Agee is initiating coverage on Crocs

with a Buy rating. It is confident that the company has turned the corner and has broadened its assortment well beyond the original Beach and Cayman clogs. There were 9 styles when the company went public in '05, now there are over 250. Sterne is confident that the backlog following 3Q10 will be up greater than the 2Q10 backlog of 41%. Wholesale growth will be driven 50% by broader assortments at retail, and 50% by door growth. It also expects meaningful acceleration in wholesale revenue and margins in Brazil, France, Germany, and the U.K., all of which just have been brought in-house and should greatly benefit from the company's expertise and financial wherewithal. Sterne Agee has a $19 PT on Crocs. CROX is trading 4% higher at $14.11