Goldman Sachs has revised its price target for Canada Goose (GOOS, Financial), reducing it from C$12 to C$11 while maintaining a Sell rating on the stock. This adjustment comes as the firm adopts a more conservative stance on the U.S. apparel and softlines sector, reflecting a broader cautious outlook on the macroeconomic environment.
The adjustment is part of a broader update from Goldman Sachs, which has also downgraded its U.S. GDP growth forecast. The firm now predicts a growth rate of 0.5% in 2025, down from an earlier estimate of 2.5% for 2024, based on quarter-to-quarter assessments. Additionally, there is a heightened concern about a potential recession, with the likelihood placed at 45% by Goldman Sachs economists.
Despite not fully incorporating a recession scenario into its forecasts, Goldman Sachs highlights several risks that could negatively impact earnings. These include recent market fluctuations, increasing geopolitical tensions, and higher tariff rates. By noting these factors, the firm advises investors to be aware of the associated downside risks.
