Guggenheim Believes Columbia Sportswear (COLM) Still Has Room to Grow


In a report released today, Robert Drbul from Guggenheim maintained a Buy rating on Columbia Sportswear (NASDAQ: COLM), with a price target of $115. The company’s shares closed yesterday at $90.53, close to its 52-week high of $95.58.

Drbul commented:

“We believe there are significant growth opportunities for COLM’s Footwear business and L-T believe this category has the potential to overtake Apparel. Footwear is 22% of sales ($538mn in 2017; vs. 18% in 2010) and COLM is confident that Footwear products are gaining traction. We see numerous drivers of growth, culminating in $1bn sales by 2023, implying an ambitious, but achievable ~11% CAGR. We note, if COLM were to hit $1bn in annual sales by ’19 (unlikely given the current size), Footwear would be ~35% of our expected ~$3bn sales. While we do not expect footwear to be gross margin accretive N-T, we would expect efficiencies unlocked through Project CONNECT to help offset any headwinds. Footwear sales grew at a 10% CAGR from 2010 to 2017 (~MT% CAGR at SOREL; ~HSD % Columbia brand CAGR).”

According to TipRanks.com, Drbul is a top 100 analyst with an average return of 18.0% and a 77.5% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Lululemon Athletica Inc, and Wal-Mart Stores Inc.

Columbia Sportswear has an analyst consensus of Moderate Buy, with a price target consensus of $99.22.

See today’s analyst top recommended stocks >>

Columbia Sportswear’s market cap is currently $6.34B and has a P/E ratio of 46.91. The company has a Price to Book ratio of 3.86.

Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock. Last month, Joseph P. Boyle, the EVP, Columbia Brand President of COLM sold 1,443 shares for a total of $131,299.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Columbia Sportswear Co. engages in the design, source, market, and distribute outdoor and active lifestyle apparel, footwear, accessories, and equipment. It operates through the following geographical segments: the United States; Latin America and Asia Pacific; Europe, Middle East, and Africa; and Canada.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts