Reaffirmed Buy on Solid U.S. Momentum, Canadian Recovery Inflection, and Attractive Valuation Entry Point

William Blair analyst Dylan Carden has reiterated their bullish stance on SVV stock, giving a Buy rating yesterday.

Dylan Carden has given his Buy rating due to a combination of factors that point to both operational strength and improving regional dynamics. He highlights that preliminary fourth-quarter results came in essentially in line to slightly ahead of expectations, with solid double-digit reported sales growth and healthy comparable-store gains in both the U.S. and Canada. Full-year revenue is tracking toward the upper end of management’s guidance range, and earnings metrics such as EPS and adjusted EBITDA are reaffirmed and bracket consensus estimates, reinforcing confidence in the near-term outlook. In particular, the U.S. business is delivering robust comp growth and strong year-over-year sales increases, suggesting that core demand and store productivity remain solid.

Carden also emphasizes the emerging recovery in Canada, which has been a weaker and more volatile market but is now showing sequential improvement that should help restore margins in the company’s most profitable geography. He sees 2026 as an important inflection point for reestablishing Canadian profitability and credibility, with the latest trends viewed as meaningful progress toward that objective. His model assumes modest same-store sales growth, continued store expansion—about 25 additional locations—and some gross margin improvement as newer stores mature, leading to mid-single-digit revenue growth overall. At roughly 19 times his forward EPS estimate, he believes the shares offer an attractive entry point relative to the company’s long-term growth runway and the potential for out-year earnings expansion and multiple re-rating as investors regain confidence in the story.

Carden covers the Consumer Cyclical sector, focusing on stocks such as Abercrombie Fitch, Ulta Beauty, and National Vision Holdings. According to TipRanks, Carden has an average return of 18.3% and a 63.57% success rate on recommended stocks.

In another report released yesterday, Northland Securities also maintained a Buy rating on the stock with a $14.50 price target.