Crocs (CROX) shares moved higher as Baird analyst Jonathan Komp upgraded the footwear specialist to “Outperform” and raised his price target to $150.
The company already sits handily above its major moving averages (MAs), a technical setup that reinforces the potential for continued momentum ahead.
Baird’s bullish note is meaningful given that Crocs stock already sits nearly 60% above its year-to-date low in late March.
Why Is Baird Bullish on Crocs Stock?
Jonathan Komp is convinced that a recovery in North America will drive a return to healthier sales growth in the second half of 2026.
He cited a series of “strategic steps” management has been executing since mid-2025 — tightening inventory discipline, pulling back on promotions, and sharpening product and marketing execution — as early evidence that sales trends are beginning to inflect positively.
North America is the single largest market for the brand, making any stabilization there a significant catalyst for CROX shares, the analyst told clients.
With the company’s direct-to-consumer channel already showing momentum, Baird sees a credible path to accelerating top-line performance as the year unfolds.
HEYDUDE Turnaround to Drive CROX Shares Higher
Komp also expressed immense confidence in a turnaround at HEYDUDE, noting the brand appears to be moving beyond its inventory and marketplace reset.
Easier comparisons will likely help the business return to growth in the back half of this year, he added.
Baird estimates $13.55 in earnings per share (EPS) for CROX in 2026, and an increase to $14.90 next year, but said strong sales momentum and continued buybacks could push the metric much higher.
Its bull-case scenario sees earnings hitting $17 per share in 2027.
All in all, despite ongoing risks from consumer spending pressures, tariffs, and competition, Komp said improving fundamentals, solid cash generation, and shareholder returns warrant a bullish view on Crocs shares.
What’s the Consensus Rating on Crocs?
Note that Baird isn’t alone in keeping bullish on CROX stock at current levels.
The consensus rating on Crocs sits at “Moderate Buy,” with price targets as high as $145, indicating potential upside of about 13% from here.
