Most of the U.S. right now is discovering a kind of cold not normally seen for another few weeks. That should be driving a lot of attention for winter clothing makers like Canada Goose (NYSE:GOOS). However, that doesn’t seem to be the case. Hedgeye came out and brought back its short idea on the stock. The market, meanwhile, is taking it seriously, with the stock down in Friday’s trading.
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Hedgeye, via analyst Brian McGough, didn’t have much good to say about Canada Goose. It called the Canada Goose brand in general “past its prime” and noted that competitors were eating its lunch by offering much better prices. McGough further noted that Canada Goose is losing market share and also losing touch with the consumer. This led McGough to note that “…both near-term and long-term earnings expectations are too high.”
Largely opposed to this notion is BOOX Research, which noted that Canada Goose has a major opportunity to improve its presence in the Chinese market. The company previously cut its full-year guidance forecasts after losing much of the Chinese market to the Zero Covid policy. Now that China seems to be reversing that play, that could open up the market to Canada Goose once more.
Indeed, there are plenty more analysts who believe Canada Goose can yet succeed. Analyst consensus calls it a Moderate Buy, with twice as many Buy recommendations as Holds. Additionally, the stock has a 25.21% upside potential, thanks to its average price target of $21.63 per share.
