Cowen analysts, like many others, believe supply chain disruption will continue through 2022, and they think that will benefit Walmart (WMT) - Get Free Report, Costco (COST) - Get Free Report and Canada Goose (GOOS) - Get Free Report.
“We believe there are many factors that have led to the crisis at the ports and that a fix is not something that will come overnight,” the analysts, led by Jason Seidl, wrote in a commentary cited by CNBC
He said it will be worse in the first half of next year. “We may see things deteriorate in January somewhat.”
As for retail king Walmart, it is “well positioned to manage rising supply chain costs given its scale, importance to vendors, majority localized sourcing, and cash considerations,” Cowen’s Oliver Chen wrote, according to CNBC.
Morningstar analyst Zain Akbari has mixed views on Walmart, to which he assigns a wide-moat.
The company had “strong third-quarter results,” he wrote last month. But, “We believe the updraft is temporary.”
As for wholesale retailer Costco, it has chartered three boats to move goods between Asia and the West Coast, which will give it an advantage over competitors, said Cowen’s Chen. It’s “better positioned to handle the headwinds than most peers.”
As for luxury outerwear seller Canada Goose, it doesn’t have to worry about supply chain too much, as most of its chain is located in North America. “We believe GOOS is one of the best positioned companies to navigate through the current challenges,” Chen said.
Walmart recently traded at $138.30, down 1.6%; Costco at $539.98, up 0.1%; and Canada Goose at $42.42, down 4.9%, at last check.
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