Analyst Stephen Macleod of BMO Capital maintained a Buy rating on Groupe Dynamite Inc. (GRGD – Research Report), retaining the price target of C$24.00.
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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. Despite a moderation in web traffic growth and a decline in Canadian visits, the company is well-positioned to capitalize on easing U.S.-China trade tensions, which could positively impact its operations.
Additionally, the company’s marketing strategies, including email promotions and new store openings, have contributed to a steady increase in website visits, particularly in the U.S. where both new and returning users have shown solid growth. The company’s strong customer engagement metrics and the potential for price increases further support the expectation of annual mid-teens adjusted EBITDA growth. These factors, combined with the easing of tariff-related risks, underpin Macleod’s confidence in the stock’s potential, maintaining a target price of $24.
According to TipRanks, Macleod is a 5-star analyst with an average return of 12.1% and a 61.42% success rate. Macleod covers the Consumer Cyclical sector, focusing on stocks such as Aritzia, Winpak , and Gildan Activewear.
In another report released on June 3, RBC Capital also maintained a Buy rating on the stock with a C$23.00 price target.