By
Bloomberg
Published
Aug 24, 2024
Crocs Inc. shares are getting a boost from the company’s partnership with actress Sydney Sweeney as Wall Street bets that the collaboration will stoke demand for its HeyDude line of shoes.
The stock rose as much as 3.5% Thursday after Williams Trading turned bullish on Crocs, touting the company’s past success with using brand marketing to drive positive results. HeyDude named Sweeney, who starred in romantic comedy Anyone But You and appeared in HBO’s Euphoria and White Lotus, as the brand’s global spokesperson on Wednesday, sending shares up 4.1%.
The addition of Sweeney “will successfully attract young consumers and bring needed attention to the HeyDude brand,” analyst Sam Poser wrote in a Thursday note, raising his recommendation on Crocs to buy from hold.
Crocs shares are on track to close at the highest level since July 11. The stock has climbed 52% this year, placing it among the top performers on the S&P 400 Consumer Discretionary Index in 2024.
The partnership has potential to be as meaningful as the collaboration between musician Post Malone and the Crocs brand in 2018, according to Baird analyst Jonathan Komp. The Post Malone pact “generated significant buzz and drove strong sellout of its featured clog,” he wrote in a Wednesday note.
Komp said the partnership with Sweeney, along with positive signals like improving search trends for the HeyDude and Crocs brands, reinforce his bullish view on shares.
Crocs has 11 buys, four holds and zero sells among analysts tracked by Bloomberg. The average price target among brokers implies roughly 14% return potential over the next 12 months.
