Canada Goose downgraded to In Line from Outperform at Evercore ISI

Evercore ISI analyst Omar Saad downgraded Canada Goose to In Line from Outperform with a price target of $20, down from $25. The analyst views the company’s new long-term financial targets, which promise to nearly triple sales to $3B in five years while taking EBIT margin from 19% currently to 30%, as "needlessly aggressive." The company’s’ plan to accelerate the brand’s transformation into a year-round lifestyle luxury brand is "overly ambitious," the analyst tells investors in a research note. The firm is concerned by Canada Goose’s plans to expand margins by so much and says investors should be aware that many of the new areas of management’s focus, like women’s, new stores, fashion and footwear, are in more competitive markets and will likely come with lower margins than its core parka business.