Analyst Raises Columbia Sportswear To 'Neutral'

NEW YORK (AP) — Columbia Sportswear Co.'s conservative full-year outlook and underperforming stock prompted a Goldman Sachs analyst to boost her rating and price target on the outdoor clothing company Wednesday.

Michelle Tan said in a client note that the Portland, Ore.-based company's full-year forecast plays it close to the vest, which significantly lowers the likelihood of downside catalysts.

In July, Columbia reaffirmed its previous full-year guidance, saying it expects sales to decline in the low double-digits for the year.

Tan says Columbia's shares have climbed 22 percent since she initiated a "Sell" rating in February, compared with a 34 percent uptick in the S&P 500. In comparison to the rest of her apparel and footwear coverage, Columbia's stock is off 15 percent in the past year while other apparel and footwear companies are down 3 percent.

Tan lifted Columbia to "Neutral" from "Sell" and increased her six-month price target to $29 from $28. That still implies downside of 16.9 percent from its closing price Tuesday of $34.89.

Shares of Columbia Sportswear gained $1.58, or 4.5 percent, to $36.47 in morning trading. The stock has traded in a 52-week range of $24.63 to $49.49.