LEVI - Nike and Canada Goose among UBS' top post-reopening stock picks

UBS is positive on select softlines stocks through the summer as the reopening trades plays out and beyond as the retail environment normalizes. "We believe Softline stock prices could increase 7-13% into September, driven by strong upward revisions to sell-side consensus EPS estimates. Our CY21 EPS forecasts for the 36 stocks we cover are 18% above the Street's view, on average. However, we think the rally ends in September and stock performances could diverge from there. This causes us to increasingly favor stocks with strong and underappreciated post-pandemic growth prospects over those without them," writes analyst Jay Sole. UBS's top Buy ideas are Nike (NKE), Deckers Outdoor (DECK), Canada Goose (GOOS), Ralph Lauren (RL), Skechers (SKX), Levis Strauss (LEVI) , PVH (PVH), American Eagle Outfitters (AEO) and Capri (CPRI). Meanwhile, ratings are boosted to Buy on Abercrombie & Fitch (ANF), Gildan Activewear (GIL), Kontoor Brands (KTB) and L Brands (LB).

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Nike and Canada Goose among UBS' top post-reopening stock picks