BMO Capital analyst Stephen Macleod maintained a Buy rating on Groupe Dynamite Inc. (GRGD – Research Report) yesterday and set a price target of C$25.00.
Stephen Macleod has given his Buy rating due to a combination of factors that highlight Groupe Dynamite Inc.’s potential for growth in the North American fast fashion women’s apparel market. The company’s web traffic analysis for February 2025 shows a positive trend, with a 6% year-over-year increase in website visits, despite a moderation from previous months. This growth is supported by effective marketing strategies, including email promotions and the opening of new stores, which have contributed to increased consumer engagement.
Moreover, the U.S. market has shown strong performance, with significant increases in both new and returning users, indicating a growing brand presence. Customer engagement metrics have also improved, with notable increases in mobile pages per visit and visit duration, alongside decreases in bounce rates. Additionally, the stock is trading below the peer average, suggesting potential for price appreciation. These factors, combined with the company’s strategic positioning and potential for mid-teens adjusted EBITDA growth, underpin Macleod’s Buy rating.