Crocs Inc. shares are rising as Wall Street expects the agreement to boost demand for the company’s HeyDude shoe brand.
The stock surged as much as 3.5% Thursday after Williams Trading upgraded Crocs, citing the company’s previous effectiveness in employing brand marketing to achieve favorable results. Sweeney, who appeared in HBO’s Euphoria and White Lotus as well as the romance comedy Anyone But You, was chosen HeyDude’s global spokesperson on Wednesday, sending shares up 4.1%.
Sweeney’s acquisition “will successfully attract young consumers and bring much-needed attention to the HeyDude brand,” analyst Sam Poser wrote in a Thursday note, boosting his Crocs rating to buy from hold.
Crocs shares are poised to close at their highest level since July 11. The stock has up 52% this year, making it one of the top performers on the S&P 400 Consumer Discretionary Index in 2024.
According to Baird analyst Jonathan Komp, the deal has the potential to be as momentous as Post Malone’s cooperation with the Crocs brand in 2018. The Post Malone partnership “generated significant buzz and drove strong sellout of its featured clog,” he wrote in a Wednesday letter.
Komp said the cooperation with Sweeney, together with favorable signals such as improved search patterns for the HeyDude and Crocs brands, reinforces his bullish outlook on the stock.
Crocs has 11 buys, four holds, and zero sells among Bloomberg analysts. The average price estimate among brokers suggests a 14% return potential over the next 12 months.
