UPDATE: Benchmark Initiates Coverage on Crocs With a Buy Rating

Benchmark initiates a Buy rating on Crocs (NASDAQ: CROX) and a price target of $23.

Benchmark comments, “We are initiating coverage on shares of Crocs with a Buy rating and 12-month price target of $23. Although timing is a concern given the lack of any near-term catalysts and seasonality, valuation is certainly attractive at these levels and our price target represents 35% upside from here; we think owning the name here makes sense as risk/reward is favorable. While we believe in the long-term viability of the brand given its transformation from a one-hit wonder to a multi-channel retailer with a diverse product offering, we are uncertain whether the consumer has yet to embrace Crocs as a year round footwear brand. And, until the company begins to do a better job communicating with its customer (and investors) that Crocs are not just for warm weather, seasonality will likely remain an issue.”

Crocs closed at $15.67 on Thursday.