UPDATE: Monness Crespi Hardt Downgrades Crocs on Lack of Near-Term Catalysts

In a report published Thursday, Monness Crespi Hardt analyst Jim Chartier downgraded Crocs (NASDAQ: CROX) from Buy to Neutral, and removed the price target.

In the report, Monness Crespi Hardt noted, “We are downgrading CROX to Neutral (from Buy) and suspending our price target as we do not see any near term catalysts. We continue to see solid top line growth prospects for the company as it expands geographically and improves its product assortment. Crocs has a strong balance sheet with $3.14 per share of net cash. At $14, CROX will trade at 5.1x EV/EBITDA on our 2014 estimate, making CROX one of the cheaper stocks in our universe despite low double digit sales growth. However, management is back to square one in its efforts to rebuild credibility with investors. And, while 3Q EPS guidance could prove conservative, we think a decline in the backlog at the end of 3Q, conservative 4Q13 guidance and a cautious 2014 initial outlook are potential obstacles to meaningful stock appreciation over the next six months.”

Crocs closed on Wednesday at $16.98.