Canada Goose is insulated from the trade war: D.A. Davidson

Canada Goose Holdings Inc. shares closed down 5.3% on Monday, and D.A. Davidson says this is a chance that investors shouldn't pass up. "We believe the pullback in Canada Goose created by the China tariff-war is overdone and creates a buying opportunity," wrote John Morris in a note. "[W]e estimate that Canada Goose derives less than 10% of its revenues directly from the Chinese consumer compared to 30% to 40% for most luxury goods brands." Canada Goose, a Canadian company, only has one store in China and should have five this year. D.A. Davidson conducted channel checks that indicate merchandise both online and in-stores is selling well, and selling out in many cases. D.A. Davidson rates Canada Goose stock buy with a $42 price target. Canada Goose stock is up 1.7% in Tuesday trading, but down 1.8% for the year to date. The S&P 500 index is up 15% for 2019 so far.

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