Canada Goose stock price target raised to $16 from $12 at TD Cowen

Investing.com - TD Cowen raised its price target on Canada Goose (NYSE:GOOS) to $16.00 from $12.00 on Thursday, while maintaining a Hold rating on the luxury outerwear maker’s stock. The new target aligns closely with InvestingPro’s Fair Value calculation, with the stock showing a remarkable 27% surge in the past week.

The price target increase follows recent news that Canada Goose may be considering going private, which TD Cowen indicated was not surprising given the quality of the brand and its growth potential relative to its current valuation. The company maintains strong financial health with a current ratio of 2.02, indicating solid liquidity to meet short-term obligations.

Canada Goose shares rose approximately 16% on the privatization speculation, though TD Cowen noted the stock still appears modestly valued at a forward EV/EBITDA multiple of approximately 4x, or 7x on a last-twelve-months basis. Unlock deeper insights into Canada Goose’s valuation metrics and 10+ exclusive ProTips with InvestingPro’s comprehensive research reports.

The research firm suggested that bidding for Canada Goose could potentially reach 9-10x EBITDA, which would imply a stock price of $20-22, representing a potential upside of 42-57% from current levels.

TD Cowen highlighted several factors that make Canada Goose attractive, including margin expansion opportunities of approximately 12% versus luxury peers at 21%, and noted that recent articles have quoted a potential $1.4 billion equity value for the company, or approximately $14 per share.

In other recent news, Canada Goose Holdings Inc. reported its first-quarter 2025 earnings, showcasing a notable revenue growth that exceeded expectations. The company’s revenue reached $108 million, surpassing forecasts by 63.18%, although earnings per share fell short of projections. Meanwhile, Bain Capital is reportedly exploring the sale of its stake in Canada Goose, with bids to take the company private valuing it at approximately $1.35 billion. Goldman Sachs is said to be advising on this potential sale process.

Williams Trading upgraded Canada Goose’s stock rating from Sell to Hold, doubling its price target to C$20.00, following news of these buyout offers. Similarly, Baird upgraded the company’s stock rating to Outperform, citing improved brand momentum and raising its price target to C$24.00. Additionally, Canada Goose shareholders elected all director nominees during the company’s recent annual meeting. These developments reflect ongoing strategic shifts and investor interest in the luxury outerwear company.

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