Footwear company Crocs has strong momentum, making it a solid play for investors ahead of earnings out next week, according to Bank of America. Analyst Christopher Nardone reiterated his buy rating and $150 price target, saying the stock is a winner in a "price-sensitive consumer environment." That suggests shares stand to gain 21.4% from Thursday's closing price. The stock, which was once a "Covid winner," has gained more than 32% year-to-date.
He forecasted total Crocs sales growth of 8% in the first quarter and 6% in the full year, and expects international sales will rise 11% this year, which he said may be conservative given the growth seen in the last two years in the segment. The analyst also noted a potential turnaround story for Crocs' casual footwear business HeyDude, which has concerned investors after its soft performance in the third and fourth quarters of last year.