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KeyBanc Lowers Crocs Target, Cites Outlook and Tariff Risks
ByAinvest
Friday, Aug 22, 2025 11:50 pm ET1min read
KeyBanc has reduced its target for Crocs (CROX) from $120 to $96, citing concerns over the company's outlook and potential tariff risks. Despite the cut, the implied upside is still 15% from the current price of $83.42. The company reported decent Q4 results, but shares fell 30% due to a weaker-than-expected outlook. KeyBanc expects headwinds for the rest of the year from reduced inventory receipts, tariff pressure, and reduced discounts.
KeyBanc has revised its price target for Crocs Inc. (CROX) from $120 to $96, expressing concerns over the company's outlook and potential tariff risks. Despite the reduction, the implied upside remains at 15% from the current price of $83.42. The company reported strong fourth-quarter (Q4) results, but shares dropped by 30% due to a weaker-than-expected outlook. KeyBanc expects headwinds in the coming months, including reduced inventory receipts, tariff pressure, and reduced discounts.Recent Performance and Outlook
Crocs (CROX) has shown consistent earnings growth over the past three years, with a positive operating margin and a quick ratio indicating strong liquidity. The company's debt-to-equity ratio, however, stands at 2.1317, suggesting a higher reliance on debt financing. Analysts estimate a 12-month price target range of $81.00 to $135.00, with an average of $95.40, reflecting a 15.08% expected movement over the next year.
KeyBanc's Concerns
KeyBanc's downgrade comes amidst broader market concerns about tariff risks and economic uncertainty. The analyst firm cited potential headwinds, including reduced inventory receipts, tariff pressure, and reduced discounts, which could negatively impact the company's revenue growth. The firm maintained its "Overweight" rating, indicating a belief in the company's long-term prospects despite near-term challenges.
Financial Health
Crocs' financial health appears robust, with a strong operating margin of 0.2702 and a quick ratio of 0.9047, indicating sufficient liquidity to meet short-term obligations. The company's debt-to-equity ratio, however, is relatively high at 2.1317, suggesting a higher reliance on debt financing.
Recent Options Activity
Options sentiment for Crocs (CROX) has been largely negative over the past 30 days, indicating a cautious outlook among investors.
References
[1] https://www.benzinga.com/quote/CROX/report
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