CROX pitch:
– CROX presents a skewed risk-reward opportunity.
– Company is undervalued because the market doesn’t believe in management’s long-term guidance of reaching $5b in revenues by 2026.
– Despite these concerns, management has historically been able to execute well and the risk of the US market slowing down will be overshadowed by increasing global sales.
– CROCS’s brand perception has also changed from being a temporary fad to becoming a well-known fashion staple, which gives a steady demand base.
CROX valuation:
– If management can reach their revenue target, CROX will likely trade at $200-300.
– CROX will likely trade at $64-$96/share in a hard-landing scenario.
Exp. gain: 60-100% upside in a bullish scenario, 20-50% downside in a hard-landing scenario.
Full write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/CROCS_INC/0705207450