Shares of Canada Goose flew higher today, lifted by an upbeat take by Wedbush analysts who called the stock “un-loved.”
The analysts gave Canada Goose Holdings (GOOS), known for its cold-weather jackets, an initial rating of outperform and set a $21 price target, more than $9 above Thursday’s close. The stock finished up 2.5% at $12.20 apiece.
Wedbush said the company is “a compelling multi-year margin recapture story,” saying an aggressive addition of stores over the past five years caused earnings before interest and taxes (EBIT) to decline by 1,200 basis points (bps). Canada Goose has slowed store growth and is reducing expenses, which should “allow margins to resume marching upward,” they wrote.
Canada Goose should also benefit from a strategy to expand its non-parka business and become a more “year-round” brand,” the analysts wrote.
The stock hit 2024 highs earlier last month. While it has lost ground since, the shares are still up for the year, rising about 3%.
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