Cowen Stays Bullish On Columbia Sportswear After Q1 Beat, Footwear Remains Biggest Opportunity


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


Columbia Sportswear Company (NASDAQ:COLM) shares are off on Friday despite reporting a big first-quarter earnings beat and raised guidance.

The Analyst

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Cowen's John Kernan maintains an Outperform rating and raised his price target from $120 to $123.

The Thesis

Kernan continues to see upside to consensus estimates this year driven by strength in the domestic Columbia, PFG and Sorel businesses.

“While International will likely need to accelerate to maintain current company growth rates, for now we see conservative consensus estimates through FY20,” Kernan wrote in a note.


FREE REPORT: How To Learn Options Trading Fast

In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, ​a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.


Columbia’s Project CONNECT initiative continues to drive outperformance and provided well over half of the gross margin expansion in the quarter, Kernan said.

Kernan also said footwear remains vone of Columbia's largest growth opportunities and grew 12 percent in the first quarter, representing 20 percent of sales.

Cowen feels current guidance is conservative and assumes significant EPS deceleration in the second half of 2019. The firm sees long-term EPS potential above $7 through 2023, on a low-double digit revenue CAGR and operating margin expansion to a mid-teens rate from low-double digit in 2018.

Price Action

Columbia Sportswear shares are down 2.5 percent to $101.77 Friday afternoon.

Related Links:

This Small Olympic Outfitter Outperformed Nike And Under Armour

From Planet Fitness To Camping World, BofA Picks Lifestyle Brands Likely To Benefit From Tax Reform


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


Posted In: Analyst ColorEarningsPrice TargetAnalyst RatingsCowenJohn KernanProject Connect