Analysts Offer Insights on Consumer Goods Companies: Columbia Sportswear (NASDAQ: COLM), Visteon Corp. (NYSE: VC) and Deckers Outdoor (NYSE: DECK)By Ryan Adsit
There’s a lot to be optimistic about in the Consumer Goods sector as 3 analysts just weighed in on Columbia Sportswear (NASDAQ: COLM), Visteon Corp. (NYSE: VC) and Deckers Outdoor (NYSE: DECK) with bullish sentiments.
Columbia Sportswear (NASDAQ: COLM)
“COLM posted an EPS beat of $1.18 versus FBR/consensus of $1.17, due to prudent cost management and inventory management benefiting GM and SG&A. However, total revenue growth was down –2.8% (versus FBR/consensus of flat), which was mainly reflective of more sales shifted into 4Q versus management original expectations. Management lowered its 2016 guidance, which we believe was the result of slow trends so far in October (particularly in DTC) from warmer weather. However, we believe COLM continues to increase market share and we expect COLM’s brands to outperform the industry and are well positioned for accelerated growth after the industry normalizes.”
According to TipRanks.com, Anderson is a 1-star analyst with an average return of -1.3% and a 38.6% success rate. Anderson covers the Services sector, focusing on stocks such as Ascena Retail Group, Abercrombie Fitch, and ClubCorp Holdings.
Currently, the analyst consensus on Columbia Sportswear is Moderate Buy and the average price target is $71, representing a 22.5% upside.
In a report issued on October 18, Canaccord Genuity also reiterated a Buy rating on the stock with a $72 price target.
Visteon Corp. (NYSE: VC)
Van Horn said:
“Following a very solid third quarter report, we continue to believe that Visteon shares present a highly investable and secular growth opportunity for automotive investors. In the nine months ended September 30, Visteon booked over $4 billion in new business, grew China domestic sales by 1.6x production growth (ex. FX), and improved electronics division adjusted EBITDA margin by nearly 2 percentage points. These are a few of our main highlights from the report, and they are important points for investors to focus on because of the implications for our thesis. The broader result for Visteon in the quarter was that the U.S. slowdown, while posing a near-term headwind to the top line, is not the core of the story and, in our view, does not dilute intrinsic value by all that much. We are still quite positive on Visteon shares given the deep valuation discount relative to significant growth and margin opportunities.”
According to TipRanks.com, Horn is a 3-star analyst with an average return of 1.8% and a 40.0% success rate. Horn covers the Consumer Goods sector, focusing on stocks such as Standard Motor Products, Federal-Mogul Corp., and Tower International.
Visteon Corp. has an analyst consensus of Strong Buy, with a price target consensus of $88.
Deckers Outdoor (NYSE: DECK)
According to TipRanks.com, Lyon is a 1-star analyst with an average return of -2.4% and a 40.9% success rate. Lyon covers the Consumer Goods sector, focusing on stocks such as Columbia Sportswear, Sequential Brands, and Foot Locker Inc.
Currently, the analyst consensus on Deckers Outdoor is Moderate Buy and the average price target is $61, representing a 12.2% upside.
In a report issued on October 19, Brean Capital also reiterated a Buy rating on the stock.