Aritzia Inc. (TSE:ATZ) achieved a new 52-week high on Thursday, reaching a peak of C$126.02, following a significant upgrade from the Royal Bank of Canada. The financial institution raised its price target for the fashion retailer from C$116.00 to C$150.00, maintaining an “outperform” rating on the stock. The shares closed at C$123.80, reflecting a 5.0% increase, with a total trading volume of 859,206 shares.
Analysts have shown increasing confidence in Aritzia’s performance. Canaccord Genuity Group recently lifted its target price from C$135.00 to C$164.00, issuing a “buy” rating in a research note. Similarly, BMO Capital Markets raised its target from C$133.00 to C$136.00, also rating the stock as “outperform.” Other notable adjustments include Truist Financial, which increased its target from C$116.00 to C$157.00, and Wells Fargo & Company, whose new target stands at C$120.00, up from C$110.00. Desjardins additionally elevated its target from C$125.00 to C$133.00, maintaining a “buy” rating.
According to MarketBeat.com, among the analysts covering Aritzia, one has rated the stock as a “Strong Buy,” nine have given it a “Buy” rating, and one has assigned a “Hold” rating. This gives Aritzia an average rating of “Buy” and an average target price of C$135.92.
Financial Metrics and Market Position
Aritzia’s financial health is underscored by a market capitalization of C$15.16 billion. The company has a P/E ratio of 54.78 and a P/E/G ratio of 1.19, indicating a robust valuation relative to its earnings growth. Its debt-to-equity ratio stands at 93.51, while its quick ratio is at 0.19 and the current ratio is 1.29.
The fashion retailer’s recent earnings report, announced on January 8, 2024, revealed earnings per share of C$1.10 for the quarter, with a net margin of 5.24% and a return on equity of 15.24%. Revenue for the quarter reached C$1.04 billion, reflecting strong consumer demand.
About Aritzia
Aritzia Inc. is an integrated design house known for exclusive fashion brands. The company designs a variety of apparel and accessories, selling them under its own banner. Its product offerings include blouses, T-shirts, pants, dresses, sweaters, jackets, coats, skirts, shorts, jumpsuits, and various accessories. Aritzia operates primarily in Canada and the United States, with the majority of its revenue generated from retail sales, followed closely by eCommerce.
As Aritzia continues to gain positive momentum in the market, analysts remain optimistic about its growth potential in the coming quarters.
