BMO Capital analyst Stephen Macleod has maintained their bullish stance on GRGD stock, giving a Buy rating today.
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Stephen Macleod has given his Buy rating due to a combination of factors that point to sustained operational and financial strength at Groupe Dynamite Inc. He highlights that the company is delivering robust comparable sales growth, with quarter-to-date performance and a strong holiday season prompting management to raise its full-year sales outlook and his own revenue forecasts. In addition, e-commerce is expanding even faster than physical stores, supported by strong customer engagement online, which reinforces the view that the brand is resonating with its target market. Macleod also underscores that Groupe Dynamite’s positioning as a “luxury-inspired” yet affordable fashion offering, together with flexible supply chain execution and the ability to react quickly in-season, supports continued market share gains in North American women’s fast fashion.
Furthermore, Macleod notes that management has increased its adjusted EBITDA margin guidance, reflecting better-than-expected profitability and improved visibility into the business. New store openings, both in North America and planned U.K. expansion, are expected to remain an important growth driver, with recent stores outperforming return targets and sales per square foot trending higher. The company’s upgraded real estate strategy and newly enhanced distribution infrastructure further strengthen its growth and margin outlook. Taken together, these factors have led Macleod to raise his estimates and target price, supporting his Buy recommendation on the stock.
In another report released today, Barclays also maintained a Buy rating on the stock with a C$110.00 price target.