Canada Goose drops after Wells Fargo downgrades stock on weak China demand

Canada Goose Holdings

14/10/2024 14:53

(Updates)
    ** U.S.-listed shares of red parka maker Canada Goose
 GOOS.N  fall as much as 8.4% to $10.85
        ** Stock last down 6.5% and is set for worst day since
July, if losses hold
  
    ** Wells Fargo downgrades stock to "underweight" from "equal
weight" and cuts price target to C$12 from C$16
    ** Brokerage says Canada Goose's over exposure in China
mainly as part of its direct-to-consumer expansion puts it in a
difficult spot with stimulus taking some time to flow through
consumer spending
    ** Adds GOOS also continues to battle high inventory levels
pushing it to discount more 
    ** GOOS faces decreased demand from its core high-margin
heavy wear products and is in the midst of shift towards lighter
wear - Wells Fargo
    ** Two of 11 brokerages rate the stock "buy" or higher,
seven "hold" and two "sell"; median PT is C$16
    ** Up to Friday's close, stock is flat so far this year

 (Reporting by Ananya Mariam Rajesh in Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; X: https://twitter.com/AnanyaMariam))