【mott and bow stretch jeans】Crocs, Shoe Carnival Surge Higher After Susquehanna Upgrades

Themott and bow stretch jeans future looks bright for

Shoe Carnival, Inc.

(NASDAQ:

SCVL

) and

Crocs, Inc.

(NASDAQ:

CROX

) heading into 2019, according to Susquehanna.

The Analyst

Analyst Sam Poser upgraded Shoe Carnival from Neutral to Positive with a $42 price target.

Poser upgraded Crocs from Neutral to Positive with a price target lifted from $25 to $31.

Analyst: Shoe Carnival Pullback Unwarranted

With significant improvements in customer engagement and merchandising becoming evident, Poser said to buy

Shoe Carnival

.

Shoe Carnival’s recent double-digit pullback is unwarranted, and the correct levels of more relevant assortments should give the company's results ongoing momentum, the analyst said in the Wednesday upgrade note.

Strong performance

from Shoe Carnival's largest vendor,

Nike Inc

(NYSE:

NKE

), also bodes well for the company, Poser said.

“Given the strong results and improved, yet conservative outlook, we had not anticipated an opportunity to upgrade the company in the near term."

Shoe Carnival shares were up 4.27 percent at $34.94 at the time of publication Wednesday.

Bullish On Crocs

Crocs is a buy following the recent repurchase and conversion of

Blackstone Group LP

(NYSE:

BX

)'s preferred stock position in the company, Poser said.

“The action removes a significant financial overhang from the company’s capital structure/P&L and shifts more control of CROX business into the hands of existing and potential shareholders,” the analyst said.

Susquehanna sees Crocs’ business continuing to accelerate as products improve and the brand gains mindshare through compelling collaborations.

In December, Crocs' second collaboration with hip-hop star Post Malone sold out in seconds and a created a lot buzz in the sneaker and social media worlds.

Crocs shares were up 5.16 percent at $27.32 at the time of publication.

Related Links:

Rhone Looks To Pioneer An Underserved Premium Mens Activewear Category

Study: Nike Is The Top Apparel Brand Among Gen Z, Millennials

Latest Ratings for SCVL

Jan 2019

Susquehanna

Upgrades

Neutral

Positive

Nov 2018

Wedbush

Maintains

Outperform

Outperform

Nov 2018

Pivotal Research

Upgrades

Hold

Buy

View More Analyst Ratings for SCVL

View the Latest Analyst Ratings

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