Williams Trading upgraded Crocs (NASDAQ:CROX) to Buy from Hold and raised its price target to $116 from $84, reflecting improved expectations for the company's financial performance.
The firm revised its outlook for fiscal 2026 U.S. revenue, now expecting a decline of 5.8%, compared to its prior estimate of a 7.5% decline.
Williams Trading also anticipates that gross margin will exceed company guidance, driven by lower tariff costs and stronger-than-expected consumer response to product and brand initiatives across both the Crocs and HEYDUDE lines.
The updated forecast includes a 54 basis point improvement in gross margin for fiscal 2026, compared to previous expectations of only slight margin expansion.
These factors supported the firm's more constructive view on the stock and its upgraded rating.
