Goldman Sachs analyst Alexandra Walvis upgraded Canada Goose Holdings (GOOS) to Buy from Neutral while lowering her price target for the shares to $47 from $65.
The stock closed yesterday up $1.55 to $35.44 after a big selloff on Wednesday.
In fiscal Q4, Canada Goose's direct-to-consumer sales growth slowed from the elevated growth rates experienced earlier in the year and missed consensus estimates, Walvis tells investors in a research note. While acknowledging that a "high multiple" stock should experience a "significant de-rating" in response to a sales miss, the analyst believes the company's fundamentals are "still strong."
The weakness in Q4 was driven in part by strategic changes as the company shipped product and set floors earlier to take advantage of early season demand, says the analyst.
Going forward, Walvis sees "several compelling growth drivers" for Canada Goose. As a result, she finds the stock's risk/reward "compelling" at current share levels.
Comments
Log in or sign up to join the conversation.