Thursday, October 11, 2007

Yared raises target on CROX to $100

Kick-ass distribution system. Weakening dollar. Global expansion. Global production. Just some of the reasons why I love CROX, and the same reasons why Georges Yared is raising his target for the Co to $100.

Yared: New price target is $100

The new products will match the current margin structure, which is important. I estimate Crocs will earn $2.00 per share on revenues of $835 million for 2007, followed by revenues of $1.12 billion and earnings per share of $2.60 for 2008. I will admit right now, these numbers are conservative, very conservative. Many investors and analysts are working the Crocs model to figure a preliminary 2009 estimate. I believe Crocs can hit revenues of $1.55 billion and earnings per share of $3.40.

With this incredible growth in front of Crocs, coupled with a solid new product line and its existing product line selling magnificently, my 12-month price target is $100. The company can easily support a 30 price earnings multiple of 2009's $3.40 earnings.

Mr. Yared has not been wrong about CROX and he isn't wrong now. I'm looking to add more shares before earnings.

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