Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 13 Feb, 24 | GOOS | Speculative Buy | CAD 17.79 | CAD 19.4 | CAD 20.8 | 9 days | 16.9% |
Data Powered by EOD Historical Data (“EODHD”).
Canada Goose Holdings Inc., together with its subsidiaries, designs, manufactures, and sells performance luxury apparel for men, women, youth, children, and babies in Canada, the United States, Greater China, rest of the Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Direct-to-Consumer, Wholesale, and Other. It offers parkas, lightweight down jackets, rainwear, windwear, apparel, fleece, footwear, and accessories for fall, winter, and spring seasons. It operates through national e-commerce markets and directly operated retail stores. Canada Goose Holdings Inc. was founded in 1957 and is headquartered in Toronto, Canada.
Higher Revenue: CAD 358 million in Q4FY24 vs. CAD 293.20 million in Q4FY23
Turnaround in Net Profit: 2.10% in Q4FY24 vs. –3.40% in Q4FY23
Lower Return on Equity: 1.20% in Q4FY24 vs. 3.0% of Industry Median
Lower Current Ratio: 2.39x in Q4FY24 vs. 2.45x in Q4FY23
Market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 17.79 | 16.87 | 19.4 | 20.8 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financials: Net revenue increased by 22% during Q4FY24, driven by higher revenue from DTC segment.
Technical: 14-day period RSI shows a reading of ~62.49 levels, indicating positive momentum.
Outlook: The company expects total revenue to grow in the low single digits YoY mainly due to low sales growth in the DTC segment and pricing increase.
Given the aforementioned factors, a "Speculative Buy" recommendations has been assigned on the stock at the closing market price of CAD 17.79 as on 13 February 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Apparel Manufacturing
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| GOOS Canada Goose Holdings Inc |
0.38 2.68% | 14.54 | 22.60 | 8.91 | 0.96 | 3.67 | 1.61 | 7.98 |
| GIL Gildan Activewear Inc. |
-0.12 0.18% | 67.19 | 19.44 | 14.20 | 3.24 | 4.81 | 2.80 | 12.38 |
| IFA iFabric Corp |
- -% | 1.09 | 115.00 | - | 1.49 | 1.61 | 1.45 | 37.76 |
| UNI Unisync Corp |
- -% | 1.55 | - | 22.27 | 0.35 | 1.78 | 0.96 | -15.7559 |
Data Powered by EOD Historical Data (“EODHD”).
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and target levels is February 13, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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