Bank of America raises Crocs price target to $160 ahead of Q2 earnings on strong North American DTC growth.

Bank of America has increased its price target for Crocs to $160 from $145 ahead of the company's Q2 earnings report, maintaining a 'Buy' rating. The upgrade reflects expectations of sustained direct-to-consumer (DTC) growth in North America, which could drive further valuation expansion. While total Q2 sales are forecasted to decline slightly by 1% year over year due to weaker wholesale sales and declines at Heydude, North American DTC sales are expected to grow by 1%, supported by popular new products like the Miami Flip sandal. The firm anticipates a 150 basis point decline in gross margin due to tariff-related headwinds but sees a more favorable operating environment in the second half of 2026 with new product launches and easier comparisons to last year.