Analyst Stephen Macleod from BMO Capital maintained a Buy rating on Groupe Dynamite Inc. (GRGD – Research Report) and increased the price target to C$28.00 from C$24.00.
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Stephen Macleod has given his Buy rating due to a combination of factors including Groupe Dynamite Inc.’s impressive financial performance and strategic positioning. The company reported a significant increase in comparable sales and adjusted EBITDA growth, surpassing market expectations. This strong performance is expected to continue, as evidenced by the upward trend in sales for the following quarter.
Additionally, Groupe Dynamite’s ability to adapt its supply chain and capitalize on in-season trends, coupled with its appeal as a luxury-inspired yet affordable brand, positions it well for sustained growth. The easing of tariff-related risks further enhances its prospects, allowing the company to maintain its competitive edge in the North American fast fashion market. These factors collectively support the expectation of continued mid-teens EBITDA growth, justifying the Buy rating.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$27.00 price target.
GRGD’s price has also changed slightly for the past six months – from C$20.960 to C$19.620, which is a -6.39% drop .