UBS analysts said in a note to clients Thursday that they doubt Columbia Sportswear (NASDAQ:COLM) will deliver strong long-term growth.
The analysts, who have a Neutral rating and a $76 price target on the stock, argue that COLM has a portfolio of solid outdoor brands that will "generate good, but not great long-term growth."
The bank's view follows its recent global sportswear survey, which revealed Columbia's positioning is "lackluster." According to UBS, "the survey shows Columbia hasn't made much progress vs. peers, as it ranked below avg. across awareness, purchase intentions, and loyalty scores.
"We see Columbia likely preserving its position as one of the leading outdoor brands but doubt its sales growth meaningfully accelerates," wrote the analysts. "We thus forecast a 5% 5-yr. EPS CAGR and doubt this growth drives stock outperformance."
Following the UBS note, Columbia shares are down around 0.4%, trading just above the $80 per share level. In 2023, the stock has declined over 9%.