Canada Goose and other retail stocks will see a lift from China's reopening, according to Wells Fargo

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These retail stocks will see a lift from China's reopening, Wells Fargo says

Chinese shoppers are likely poised to hit the streets again during the country's reopening, a positive tailwind for certain retail stocks, according to Wells Fargo. "With the Lunar New Year kicking off on January 21, we believe reopening against multiple quarters of easier regional compares will benefit companies with the largest exposure," wrote analyst Ike Boruchow in a report Thursday.

Of these names, two – Canada Goose and Farfetch – are trading at deep discounts versus historic multiples, meaning now may be a good time to snap up shares. Wells Fargo has overweight ratings on both. The firm is favorable on Canada Goose's highly profitable direct-to-consumer channel, which it thinks can benefit this year after a period of slow productivity.

 

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