May 30, 2019 / 11:03 AM / 5 months ago

BUZZ-Street View: Canada Goose's runway for top-line growth significant, weakness overdone

** High-end winter clothing brand Canada Goose Holdings Inc on Wednesday posted its slowest revenue growth in eight quarters and forecast even slower sales growth for the next three years

** At least 6 brokerages cut their PT following results

** $1000 parka maker’s Toronto-listed shares fell about 26% to more than 1-yr low on Wednesday

‘RARE Q4 MISS’

** RBC (“outperform,” PT: C$75) says revenue miss and FY20-22 outlook is driving concern that co’s hyper-growth trajectory is normalizing

** Credit Suisse (“outperform,” PT: C$76) says that despite earnings disappointment, valuation is reaching sobering lows

** GOOS should have done better, given international rollout and cold weather through the quarter - CS

** DA Davidson (“buy,” PT: $42) says investors wary on inventory and FY20 guidance

** GOOS is pulling on all levers to support growth which should uphold margin expansion in the back-half - DA Davidson

** Cowen (“outperform,” PT: C$67, $50) says discrepancy between sales growth and unit growth suggests deceleration

** Susquehanna (“positive,” PT: C$88) says guidance is conservative and a beat-and-raise story is likely throughout the year

** Pullback in the share price is overdone, offers an attractive entry point for long-term holders - Susquehanna (Reporting By Arundhati Sarkar in Bengaluru)

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