Barclays upgrades Canada Goose stock rating to Equalweight on balanced risk

Published 11/07/2025, 07:36
Barclays upgrades Canada Goose stock rating to Equalweight on balanced risk

Investing.com - Barclays (LON:BARC) upgraded Canada Goose (NYSE:GOOS) from Underweight to Equalweight on Friday, while raising its price target to $14.00 from $11.00. The stock, currently trading at $13.46, has shown impressive momentum with a 35% gain over the past six months. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value metrics.

The upgrade reflects Barclays’ view that Canada Goose now presents a balanced risk/reward profile, marking a significant shift in the firm’s outlook for the luxury outerwear manufacturer.

Barclays cited several factors supporting the rating change, including operational improvements that are expected to drive margin growth and the company’s clean inventory position heading into the second half of 2025.

The research firm also highlighted Canada Goose’s relatively insulated exposure to potential tariff impacts due to its Canadian manufacturing base, as opposed to competitors with production concentrated in Asia.

Barclays expects these company-specific drivers to support fundamental performance for Canada Goose throughout 2025, justifying the more neutral stance on the stock.

In other recent news, Canada Goose Holdings Inc . reported a strong finish to its fiscal year 2025 with fourth-quarter results that exceeded expectations. The company posted adjusted earnings per share of C$0.33, surpassing analyst estimates of C$0.16, while revenue rose 7.4% year-over-year to C$384.6 million, beating expectations of C$355.05 million. Despite these positive results, Williams Trading downgraded Canada Goose from Hold to Sell, citing concerns over the sustainability of the company’s recent success and attributing it to favorable weather conditions rather than fundamental improvements. Meanwhile, Evercore ISI raised its price target for Canada Goose shares to $11 from $10, maintaining an In Line rating, noting strong fourth-quarter performance and improvements in global same-store sales.

However, the company faces a $30 million charge in its first-quarter financial results for fiscal 2026 due to an arbitration ruling related to a contract termination in 2021. Canada Goose has expressed disagreement with the legal basis of the award but stated that it will not impact its ongoing operations. Additionally, the company reported that its direct-to-consumer revenue increased by 15.7%, driven by comparable sales growth and new store openings, although wholesale revenue declined by 23.2% due to a lower planned order book in certain regions. For the full fiscal year 2025, Canada Goose’s revenue reached C$1.35 billion, a 1.1% increase from the previous year, with adjusted net income rising to C$109.4 million. Despite the mixed analyst ratings, the company remains confident in its brand strength and financial position.

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