BofA Global Research downgrades Columbia Sportswear on supply chain constraints
05/10/2021 15:40
** Shares of outdoor lifestyle apparel maker Columbia
Sportswear Co COLM.O fall 2.5% to $95.66 after BofA Global
Research downgrades to "neutral" from "buy"
** Brokerage sees limited opportunity for the company in
2022 and believes that supply chain constraints could pressure
2022 outlook
** Sees risk to H1 2022 wholesale shipments given global
supply chain constraints, including continued shipping delays,
and the impact of Vietnam factory closures which could impact
COLM's footwear business
** Brokerage sees potential continued pressure on gross
margins through 2022 given elevated ocean freight costs along
with a slowdown in spending on athletic footwear & apparel
** Brokerage, however, believes "near-term risks are
partially offset but longer term channel fill opportunities"
** Sees deceleration in e-commerce momentum for COLM in Q3
** Brokerage cuts PO to $108 from $137, which is 11.5% below
the median PT of $122.15
** Avg rating among 12 analysts is "buy" - Refinitiv Eikon
Data
** YTD, stock is up 12.3% as of last close
(Reporting by Aniruddha Chakrabarty)
((aniruddha.c.thomsonreuters.com@reuters.net))