Barclays Upgrades Crocs Stock, Shares Rise

Deep News01:20

Barclays upgraded Crocs (CROX) to overweight from equal-weight, sending the stock up nearly 6% on Thursday.

Analyst Adrienne Yih also raised her price target by 18%, to $139 from $118, saying the company's multi-year growth story is now clearer.

Yih noted that product innovation is driving more steady sales growth, there is significant room for expansion in international markets including China, and a turnaround at the company's HeyDude brand could serve as a catalyst for the stock.

She listed those reasons and added that the company's direct-to-consumer (DTC) business is performing strongly, promotional spending is more restrained, and inventory management has reached an inflection point.

"Importantly, many of the company's standout products are entirely new lines beyond the classic clog," she wrote in a research note. "This gives us more confidence that the company's growth is broadening and becoming more sustainable."

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