BMO Capital analyst Stephen Macleod maintained a Buy rating on Groupe Dynamite Inc. yesterday and set a price target of C$76.00.
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Stephen Macleod has given his Buy rating due to a combination of factors including the significant growth in web traffic and user engagement, particularly in the U.S. market. The September analysis showed a notable acceleration in web traffic growth, with a 49% increase in the U.S. compared to the previous month, and an 81% rise in new users, which is expected to support strong comparable sales growth.
Additionally, Groupe Dynamite is strategically positioned for expansion in the North American fast fashion women’s apparel sector, with several factors driving mid-teens adjusted EBITDA growth annually. The company’s marketing efforts, including new store openings and promotional campaigns, have contributed to increased website visits. Furthermore, the potential for brand awareness growth and pricing adjustments in the U.S. market reinforces the positive outlook, despite some uncertainties such as tariff impacts.