Analyst Ratings Coverage
Barclays Capital (Rank#6), the investment banking division of Barclays, recently downgraded Canada Goose’s stock to “Equal Weight” from “Overweight,” citing the company’s higher valuation and potential risks to sales growth.
Canada Goose is a Canadian outerwear company that specializes in high-end parkas and winter apparel. The company has gained popularity in recent years for its signature jackets, which are designed to withstand extreme cold weather conditions. The company’s success has also been linked to its high price point, which has made its products unattainable for some consumers.
Barclays Capital’s downgrade of Canada Goose’s stock is based on several factors. The investment bank believes that the company’s valuation is high, which could limit its potential for future growth. Barclays Capital also sees risks to sales growth, as a shift in consumer behavior and purchasing patterns is evident as a catalyst of economic conditions.
Canada Goose’s reliance on brick-and-mortar retail stores could also be a risk to its future growth. With the rise of e-commerce and online shopping, traditional retail stores have faced significant challenges in recent years. As a result, Canada Goose’s sales growth may be limited by its dependence on physical retail locations.
Despite these challenges, Canada Goose has continued to perform well in recent months. The company reported strong earnings for its most recent quarter, with revenue increasing by 33% year-over-year. Canada Goose’s e-commerce sales have increased significantly in recent years, which could help to offset any potential challenges with physical retail stores.
The downgrade of Canada Goose’s stock by Barclays Capital is a reflection of the current market conditions and the challenges that the company may face in the future. While the company has continued to perform well in recent months, its high valuation and potential risks to sales growth could limit its potential for future growth.
GOOS Stock Forecast & Analysis
According to 10 analysts, the average target price for Canada Goose Holdings Inc over the next 12 months is CAD 31.10, with a Buy rating. Stock Target Advisor’s analysis shows 11 positive signals and 6 negative signals, leading to a Slightly Bullish outlook. The stock price has changed by -0.27% in the past week, -0.81% in the past month, and -10.98% in the past year, with the last closing price at CAD 25.78.
