Crocs shares extend gains after Sidney Sweeney deal sparks rally | kbnmart

Crocs shares are getting a boost from the company’s partnership with actress Sydney Sweeney, as Wall Street is betting the collaboration will drive demand for its HeyDude line of shoes.

The stock rose about 3.5% on Thursday after Williams Trading turned bullish on Crocs, touting the company’s past success using brand marketing to drive positive results. HeyDude hired Sweeney, who starred in the 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 attract younger consumers and bring much-needed attention to the HeyDude brand,” analyst Sam Poser wrote in a note Thursday, raising his recommendation on Crocs to buy from hold.

Crocs shares are on track to close at their highest level since July 11. The stock has risen 52% this year, putting it among the best performers in the S&P 400 Consumer Discretionary Index through 2024.

According to Baird analyst Jonathan Kump, the partnership has the potential to be as meaningful as the collaboration between musician Post Malone and the Crocs brand in 2018. “The Post Malone deal generated a lot of buzz and drove strong sales of the iconic shoe,” he wrote in a note on Wednesday.

Combe said the partnership with Sweeney, along with positive signs like improved search trends for HeyDude and Crocs, reinforces his bullish view on the stock.

Crocs stock has 11 buys, four holds and zero sells among analysts tracked by Bloomberg. The average price target among brokers suggests a return of about 14% over the next 12 months.