Goldman Sachs Maintains Sell Rating for Crocs with $87 Price Target

Goldman Sachs analyst Brooke Roach maintained a Sell rating and set a $87.00 price target for Crocs (CROX). Roach covers the Consumer Cyclical sector and has a 6.0% average return and 51.63% success rate. The current analyst consensus on Crocs is a Strong Buy with an average price target of $121.71.

Goldman Sachs analyst Brooke Roach has maintained a Sell rating on Crocs, Inc. (CROX) and set a price target of $87.00 [1]. This rating contrasts with the current analyst consensus, which is a Strong Buy with an average price target of $121.71. Roach covers the Consumer Cyclical sector and has a 6.0% average return and 51.63% success rate [2].

Crocs, Inc. has been trading at $102.01 as of July 14th, with trailing and forward P/E ratios of 6.40 and 8.92 respectively [1]. The company's financial resilience is underscored by its historically low valuation multiples, robust fundamentals, and shareholder-friendly capital structure. Despite a stall in trailing-twelve-month revenue, revenue per share has risen due to aggressive share repurchases, which have reduced the outstanding share count from 90 million to 56 million. Over the past 14 years, revenue has compounded at an annual rate of 18%, with EBITA and free cash flow expanding at rates of 20–30% and 20–25% respectively [1].

Crocs, Inc. boasts industry-leading profitability with gross margins at 59%, operating margins at 25%, net margins at 23%, ROE at 48%, and ROA at 19% [1]. The company's balance sheet is solid, with $391 million in CROX stock, $166 million in cash, and over $1 billion in property assets. Crocs' strategy focuses on direct-to-consumer (DTC) channels to enhance margins while pursuing global expansion, especially in underpenetrated markets like China and India [1].

Goldman Sachs' analyst Brooke Roach has cited the company's valuation and financial consistency as reasons for her Sell rating. She believes that certain AI stocks offer greater upside potential and carry less downside risk. Roach's view is that Crocs, Inc. is not on the list of the 30 Most Popular Stocks Among Hedge Funds, with only 36 hedge fund portfolios holding CROX at the end of the first quarter, down from 41 in the previous quarter [1].

In contrast, the market's caution contrasts sharply with Crocs' financial resilience, offering a favorable risk/reward setup. The company's stock price has appreciated by approximately 1.8% since June 2025, driven by buybacks and global expansion [1]. Despite the strong bull case presented by Charts&Companies, Roach maintains a cautious view, suggesting that certain AI stocks may offer better investment opportunities.

References:

[1] https://finance.yahoo.com/news/crocs-inc-crox-bull-case-203255932.html

[2] https://www.investing.com/news/swot-analysis/goldman-sachs-swot-analysis-stock-resilience-amid-market-challenges-93CH-4141010