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Research Alert: CFRA Maintains Buy Opinion On Shares Of Columbia Sportswear Co.

· 02/04/2021 18:14

11:10 PM EST, 02/04/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target by $25 to $115, 24.2x our '22 EPS estimate of $4.75, above the 3-year historic average. We lower our '21 EPS estimate to $4 from $4.24. COLM posts Q4 EPS of $1.44 vs. $1.67, beating consensus. Revenues declined 4% to $916M, beating consensus. We maintain our positive view to reflect COLM's improving fundamentals, coupled with our more tactical stance within the Consumer Discretionary sector. We like the company's brand portfolio, which is catered to accelerating consumer appetite for work-for-home and outdoor exercise (most resilient Covid-19 fashion category). We also view COLM's financial profile as attractive, with a strong balance sheet, exiting Q4 with negative net debt. We highlight underappreciated upside potential to COLM's gross margin, driven by a favorable direct-to-consumer channel mix shift, strong full-price sell through,improving inventory positions,and compelling higher-margin product launches, which should drive over $600M in free cash flow over the next 2 years.