Near-Term Headwinds Pose Problem for Crocs

On Monday, Goldman Sachs released some bearish comments on Crocs, Inc CROX. Analyst Taposh Bari maintained a Neutral rating with a negative near-term bias. Japan's sale tax hike, which goes into effect on Tuesday, comes “ahead of CROX' peak spring/summer selling season, creating another potential headwind to a region that has been struggling since mid-2012,” said Bari. Crocs' search for a new Chief Executive Officer may create “execution risk ahead of the company's peak selling season,” said the analyst. The chances the company hires a new CEO over the next 30 days is “high," according to Bari. Bari's model, using a blended price to earnings multiple of 20.6x, “which assumes a 15% probability of being acquired,” values Crocs between $14-$15 per share.