Loop Capital upgrades shares of Crocs, says volatility around tariffs has created buying opportunity

Crocs’ recent pullback in shares has created an enticing entry point for investors, according to Loop Capital.

Shares rose around 4% in the premarket after the firm upgraded the stock to buy from hold, pointing to gains ahead for its Hey Dude brand. Its current price target implies nearly 12% upside potential.

“We think valuation is attractive, and the company sounded on plan at our conference this week,” analyst Laura Champine wrote on Wednesday. “Management expects DTC to grow this year at Hey Dude, and we think our expectation for 1% growth in the channel may prove conservative. Hey Dude laps easy comparisons, and DTC may show upside growth in Q1 as the brand laps -11% YoY.”

The stock has also moved more than 5% in the past week on the heels of President Donald Trump imposing an additional 10% tariff on Chinese goods early last week.

“The additional 10% tariff that has been announced recently on Chinese-made goods is not in CROX’s previous outlook,” Champine wrote. “That said, Hey Dude is pulling back production in China to 27% of the total, which is a massive shift as it adjusts to the volatile tariff environment.”

“We think volatility around tariffs has created a buying opportunity,” the analyst also said.

— Sean Conlon

The consumer price index rose slightly less than expected in February, a welcome sign for investors as worries over inflation persist.

CPI increased 0.2% month over month and 2.8% from the year-earlier period. Economists polled by Dow Jones expected CPI to have risen 0.3% month over month and 2.9%, respectively.

— Fred Imbert

These are some of the stocks making notable premarket moves:

• Groupon — Shares of the digital marketplace surged around 21% after the company’s full-year revenue guidance surpassed Wall Street’s expectations. Groupon issued a range of $493 million to $500 million, exceeding the consensus forecast of $491.5 from analysts polled by FactSet.
• Intel — Shares jumped 8% after Reuters reported that TSMC has raised a joint venture proposal to U.S. chipmakers Nvidia, Advanced Micro Devices and Broadcom to operate Intel’s foundry division.
• Crocs — The shoe stock popped 4.2% on the back of Loop Capital’s upgrade to buy from hold.

See the full list here.

— Alex Harring

With heightened uncertainty around a looming trade war coming in the form of tit-for-tat retaliation, Deutsche Bank believes that the current global trade order as we know it could be reshaped in very dramatic ways.

“The outstanding question is whether trade will now enter an outright decline, or evolve anew with reduced US leadership and involvement,” wrote strategist Mallika Sachdeva in a recent note. “Taking a step back from the ongoing news flow, we look at the longer-term forces that are likely to shape global trade going forward, focusing on the four key economic blocs.”

These forces include:

1. “U.S. energy independence is enabling a return to more protectionist roots.”
2. “China will likely remain trade-focused to secure resources, export markets, and influence.”
3. “Trade lies at the heart of the European project and this is not likely to change.”
4. “Many countries in the Global South will likely continue to look to trade for development even as it gets more challenging.”

— Lisa Kailai Han

Asia-Pacific markets were mixed on Wednesday, after all three benchmarks on Wall Street whipsawed on uncertainty over U.S. President Donald Trump’s tariff plans and fears of a recession in the world’s largest economy.

Japan’s benchmark Nikkei 225 index ended the day flat at 36,819.09, while the broader Topix index gained 0.91% to close at 2,694.91.

Shares in automaker Nissan increased 0.61%, in choppy trade, following an announcement that CEO Makoto Uchida will step down from his position on April 1. He will be replaced by Ivan Espinosa, the company’s current chief planning officer.

The company had been in talks with Honda Motor to merge and create what would have been the world’s third-largest automaker by sales. Discussions on this were terminated, but Honda had reportedly said it was open to resuming merger talks after Uchida steps down.

Shares in Honda, meanwhile, fell 0.14%.

Japan’s annual wholesale inflation hit 4% in February, slowing from the seven-month high of 4.2% the month before.

The latest reading is still well above the country’s 2% inflation target and raises bets that the Bank of Japan will hike interest rates.

South Korea’s Kospi index closed 1.47% higher at 2,574.82, while the small-cap Kosdaq advanced 1.11% to end at 729.49.

Hong Kong’s Hang Seng Index fell 1.36% in its last hour, while mainland China’s CSI 300 lost 0.36% to close at 3,927.23.

China’s 10-year government bond yield is now hovering at 1.918% and is edging up to the 2% key psychological level. Meanwhile, the 30-year yield was at 2.015%, after it rose above the 2% level on Monday.

Meanwhile, losses in Australia’s S&P/ASX 200 widened to 1.32% to end the day at 7,786.20.

Elsewhere, India’s benchmark Nifty 50 fell 0.55%, while BSE Sensex was down 0.34% as at 1.15 p.m. local time.

— Amala Balakrishner

Check out some of the stocks making headlines in extended trading:

• Groupon — Shares gained nearly 7% after the e-commerce marketplace issued better-than-expected full-year revenue guidance. Groupon forecasts full-year revenue in the range of $493 million to $500 million, while analysts polled by FactSet were looking for $491.5 million.
• Heritage Insurance Holdings — Shares of the property and casualty insurance company slipped 4%. Net income came in at 66 cents per diluted share in the fourth quarter, down from $1.15 per share in the year-ago quarter.
• Casey’s General Stores — Stock in the convenience store operator advanced 3% after fiscal third-quarter results surpassed analysts’ estimates on the top and bottom lines. The firm reported earnings of $2.33 per share on revenue of $3.90 billion. Analysts polled by LSEG anticipated earnings of $1.96 per share and revenue of $3.73 billion.

— Brian Evans

Stock futures were little changed on Tuesday as investors looked toward the February consumer price index report.

Futures tied to the S&P 500 gained 0.13%, while Nasdaq 100 futures advanced 0.17%. Futures tied to the Dow Jones Industrial Average gained 37 points, or 0.09%.

— Brian Evans