Canada Goose Stocks Gets Another Bullish Backer

GOOS has been hovering near the $50 level for weeks

May 20, 2019 at 9:26 AM
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Luxury retailer Canada Goose Holdings Inc (NYSE:GOOS) received new coverage on Wall Street this morning, with HSBC setting a "buy" rating and $62 price target. The analyst note discussed the possibility for strong growth over the next three years, given the company's store count and potential expansion outside North America. However, the firm did say that GOOS will need to diversify its designs to maintain its brand loyalty.

The stock closed last week trading at $48.32, bouncing around the $50 level for several weeks now. This is also near the site of a huge bull gap from last June, while the 200-day moving average acted as stiff resistance earlier this month. Still, most analysts are bullish on the security, judging by six "strong buy" recommendations on the Street, compared to two "holds" and zero "sells."

However, GOOS isn't universally loved. Short interest is high, accounting for 13.5% of the float, putting 5.7 days' worth of buying power into the hands of these bears, going by the average daily trading volume. That's enough for a potential short-squeeze situation.

As for options data, Canada Goose right now has a Schaeffer's Volatility Index (SVI) of 63%, which ranks in the bottom third of its annual range. So it would appear near-term options premiums are relatively attractive right now.

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