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Columbia Sportswear on the Street: Analyst Recommendations ahead of the 4Q17 Results

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Columbia Sportswear’s ratings

Columbia Sportswear (COLM) is covered by 17 Wall Street analysts, who have together rated the stock a 2.2 on a scale of 1.0 (“strong buy”) to 5.0 (“sell”).

Specifically, 47% of the Wall Street analysts recommend a “buy” for the stock, while the remaining 53% recommend a “hold.” There are currently no “sell” ratings on COLM’s stock.

By comparison, 6%, 3%, and 35% of analysts suggest a “sell” for Nike (NKE), Lululemon Athletica (LULU), and Under Armour (UAA) stocks, respectively.

Citigroup, Pivotal Research, and Guggenheim are among the brokerage houses that recommend a “buy” COLM’s stock, while Stifel, Buckingham Research, and Canaccord Genuity are among those that recommend a “hold.”

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Recent analyst actions

Notably, COLM stock was downgraded by Goldman Sachs from a “buy” to “neutral” on December 12. Analyst Lindsay Drucker Mann cited valuation concerns when explaining this downgrade.

Mann noted that the company had a balanced risk-reward profile at the current share price and that its stock price (after the recent rally) already reflects the company’s fundamental improvements.

Target price

COLM hit a 52-week high price of $76 on January 24 and closed a tad lower at $74.3. Wall Street has set an average price target of $73.67 for the stock, which reflects a downside of 1% over its the current share price. Individual target prices range between $58 (a 22% downside) and $84 (a 13% upside).

By comparison, the stock prices of Nike and Under Armour have also attached downsides of 3% and 8%, respectively. However, Lululemon and Skechers (SKX) are likely to see their share prices rise 4% and 5%, respectively.

ETF investors seeking to add exposure to COLM can consider the First Trust SMID Cap Rising Dividend Achievers ETF (SDVY), which invests 1% of its portfolio in the company’s stock.

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