Analyst Stephen Macleod of BMO Capital maintained a Buy rating on Aritzia (ATZAF – Research Report), retaining the price target of C$80.00.
Stephen Macleod has given his Buy rating due to a combination of factors including Aritzia’s robust web traffic growth and strong customer engagement metrics. The company’s total web traffic saw a significant increase, with a 15% year-over-year growth in February, driven by positive customer response to recent flagship store openings and effective marketing strategies. This growth is particularly notable in the U.S. market, where web traffic remained solid, indicating a strong potential for expansion.
Additionally, Aritzia’s strategic investments in digital marketing have resulted in increased paid search traffic, further supporting the company’s growth trajectory. Macleod also highlights Aritzia’s unique market positioning and the significant opportunity to drive growth in the U.S., which is expected to lead to revenue acceleration and margin expansion in the coming years. These factors contribute to a positive risk-reward outlook for the stock, justifying the Buy rating and maintaining the target price of $80.
In another report released on March 13, Stifel Nicolaus also maintained a Buy rating on the stock with a C$73.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ATZAF in relation to earlier this year.