Goldman Sachs has raised its price target for Crocs Inc. to $128 from $95, while keeping a Sell rating on the stock. The firm cited stronger growth, improved profitability, and a positive outlook for the fourth quarter. Crocs has outlined a path for better growth into 2027, supported by a share buyback program that should boost earnings per share. The stock has surged 75.7% year-to-date to $150.26, trading near its 52-week high of $151.82, according to InvestingPro data.
The Crocs brand continues to see healthy international momentum, while product diversification is gaining traction. The HEYDUDE brand has returned to growth, with improving full-price selling, inventory health, and profitability. Goldman Sachs is looking for continued evidence that these improving trends are driven by more than just easy comparisons against last year’s wholesale destocking initiatives.
Management has been aggressively buying back shares, reinforcing confidence in the company’s turnaround strategy. However, Goldman Sachs noted that consistent execution going forward poses a risk to its cautious view on the stock. In other recent news, Crocs reported stronger-than-expected third-quarter results, with adjusted earnings reaching $3.69 per share, surpassing Wall Street’s estimate of $3.30. Revenue rose to $1.04 billion, exceeding the projected $1.0 billion.
The company also raised its full-year outlook, reflecting increased demand across its brands. The HEYDUDE brand showed positive performance after over two years of negative results, bolstered by improved wholesale orders. BTIG maintained a Neutral rating on Crocs, acknowledging the company’s solid quarter and raised outlook.