Standpoint Research Downgrades Crocs (CROX) to Hold
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Price: $86.00 +3.25%
Rating Summary:
16 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
16 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Standpoint Research downgraded Crocs (NASDAQ: CROX) from Buy to Hold.
The firm comments, "Our August 8, 2011 recommendation is up 17.3% for us, plus 1260 bps versus the S&P and within $2 of the price target we set for next year. CROX market capitalization is now $2.6 bln and the shares are fairly valued at 2.7X sales, 18X cash flow, 22X trailing twelve months earnings, and 18X estimates for next year. Relative Strength is now 96/100 and that usually signals a market over-reaction to good news and an over-bought condition in the near term. The shares are a bit stretched on other valuation measures as well. With many names in the stock market up by 10%-15% since the Sept-22 intra-day low, we think it makes sense to lock in some recent gains because risk remains and there is a good chance we reverse and take out the intra-day low from last week before all is said and done. To-date, every rally like this that has been sold into has been profitable, so we will stick with this ‘hit-and-run’ strategy that has worked well for us with TPX, CVH, SBS and PCS; see table below. If CROX shares come back down to the low/mid-$20s, we may reinstate this name. We have gone in and out of this name three times since November 2009."
For more ratings news on Crocs click here and for the rating history of Crocs click here.
Shares of Crocs closed at $28.39 yesterday.
The firm comments, "Our August 8, 2011 recommendation is up 17.3% for us, plus 1260 bps versus the S&P and within $2 of the price target we set for next year. CROX market capitalization is now $2.6 bln and the shares are fairly valued at 2.7X sales, 18X cash flow, 22X trailing twelve months earnings, and 18X estimates for next year. Relative Strength is now 96/100 and that usually signals a market over-reaction to good news and an over-bought condition in the near term. The shares are a bit stretched on other valuation measures as well. With many names in the stock market up by 10%-15% since the Sept-22 intra-day low, we think it makes sense to lock in some recent gains because risk remains and there is a good chance we reverse and take out the intra-day low from last week before all is said and done. To-date, every rally like this that has been sold into has been profitable, so we will stick with this ‘hit-and-run’ strategy that has worked well for us with TPX, CVH, SBS and PCS; see table below. If CROX shares come back down to the low/mid-$20s, we may reinstate this name. We have gone in and out of this name three times since November 2009."
For more ratings news on Crocs click here and for the rating history of Crocs click here.
Shares of Crocs closed at $28.39 yesterday.
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