The firm said it raised its rating on the outdoor apparel, footwear, accessories, and equipment designer, marketer, and distributor, based on its "proprietary outwear survey, positive industry commentary, and likely better traffic trends at key outwear channels."
"Columbia has appreciated +18% since mid-October, but only +6% year-to-date. With operating margins likely up significantly this year to [around] 9.5%, we think management is on the path to returning to mid-teens operating margins, which has not been achieved since 2005," Citigroup said.
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The firm said it raised its price target on Columbia Sportswear stock to $48 from $42.
Shares of Columbia Sportswear are higher by 4.39% to $43.48 in pre-market trading this morning.
Separately, TheStreet Ratings team rates COLUMBIA SPORTSWEAR CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COLUMBIA SPORTSWEAR CO (COLM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."