Canada Goose down as Goldman Sachs downgrades stock on slower global luxury growth

Canada Goose Holdings

21/10/2024 19:36

** U.S.-listed shares of luxury parka maker Canada Goose
 GOOS.TO   GOOS.N  down as much as 7.7% at $10.38 
    ** Brokerage Goldman Sachs downgrades rating on stock to
"sell" from "neutral" ahead of Q2 results on Nov. 7
    ** Cites intensifying competition, signs of normalizing
brand momentum, slowing global luxury backdrop and a choppy
China macro as risks to GOOS
    ** "GOOS is one of the few brands in our coverage universe
with a sharp increase in comp growth embedded into H2 guidance,
and we thus see more limited room for outperformance," — GS
analyst Brooke Roach
    ** Brokerage sees potential upside from recent fiscal
stimulus measures in China, but "cautious on the level and
magnitude of the improvement possible" 
    ** Lowers PT to $9 from $11.50; says tougher backdrop could
weigh on co's ability to drive sales growth and operating margin
expansion
    ** Two of 11 brokerages rate the stock "strong buy", five
"hold" and four "sell", with a median PT of $14
    ** Including session's moves, stock has fallen 11.5% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com))