Nomura Instinet analyst Simeon Siegel downgraded Acushnet Holdings, the parent of Titleist and Footjoy, to “Neutral” due to the stock’s recent run-up, while also expressing valuation concerns on Under Armour and Canada Goose.

In a note, Siegel explained that the Acushnet had reached Nomura’s price target of $33 with shares rising a third over the last twelve months. He wrote, “We continue to recognize GOLF’s brand equity and expect its leadership position to persist; however with recent multiple expansion we move to the sidelines on valuation.”

Siegel also wrote that Nomura is concerned that the market caps for Under Armour and Canada Goose have both “stretched beyond reasonable long-term levels. He wrote in the note that while fundamentals have been improving for Under Armour and Canada Goose, both are approaching $10 billion valuations despite “what we believe to be a meaningfully lower profit potential” at Under Armour  and “revenues at only a fraction of these levels” at Canada Goose. He noted that he still expected industry-leading growth to continue at Canada Goose.

Nomura has a “Reduce” rating on Under Armour with a price target of $14 and “Neutral” rating on Canada Goose with a price target of CDA $60.

On Tuesday, shares of Acushnet closed at $24.17, down 50 cents. Under Armour closed at $19.97, down 14 cents. On the Toronto Stock Exchange, Canada Goose closed at CDA $74.67, up CDA $2.66.

Photo courtesy Titleist