What happened

Shares of Crocs (CROX 1.79%) charged sharply higher on Friday, surging as much as 11.3%. By the end of the trading day, the stock was still up 11.1%.

The footwear maker continued to ride the wave of enthusiasm in the wake of its record-setting third-quarter financial report, but also got a boost courtesy of bullish comments made by a Wall Street analyst.

So what

Baird analyst Jonathan Komp raised his price target on Crocs to $100 from $95, while simultaneously maintaining his outperform (buy) rating on the shares. This is a rare move given the macroeconomic uncertainty and represents potential upside for investors of roughly 31% compared to the stock's closing price on Thursday. 

The analyst was rife with confirmation bias on the heels of Crocs' third-quarter financial report and the corresponding analyst update. He noted that the results confirmed or reinforced "many of the bullish elements of our thesis."

Komp specifically noted a couple of factors that he believes could result in further gains. These include healthy upside to Crocs' revenue and earnings per share (EPS) growth, and positive brand momentum supported by products with a higher average selling price. He expects these factors will continue to ramp through the first half of 2023.

Now what

The company's third-quarter results, which were released before the market open yesterday, provided support for the analyst's bullish view. Revenue of $985 million climbed 57% year over year -- or 63% on a constant currency basis -- while adjusted EPS of $2.97 jumped 20%.

Unlike many companies in recent weeks, Crocs also raised its full-year guidance. Management now expects revenue in a range of $3.455 billion to $3.520 billion, up from its previous guidance range of $3.395 billion to $3.505 billion. The company is also guiding for EPS of $10.13 at the midpoint, up from $9.90.

Crocs results illustrate that not all consumer goods are created equal and some can still thrive during a downturn. That, and its incredible value, make the stock a buy.