UBS Reiterates Buy Rating on Aritzia After Q2 Beat2023-09-29 02:52:42 PM ET (MT Newswires)
02:52 PM EDT, 09/29/2023 (MT Newswires) -- Aritzia delivered a $0.07 Q2 EPS beat and maintained its FY24 operating outlook. UBS is reiterating its Buy rating and sees an attractive 3:1 upside/downside skew for three reasons:
1) ATZ's outlook already factors in a tough H2 2024 consumer spending environment.
2) ATZ is relatively short-crowded and sentiment remains bearish, based on UBS conversations with investors.
3) UBS believes EPS growth bottomed in Q2 and anticipate ongoing inflection in H2 2024 and into FY25.
"As this plays out, we think sentiment will rebound and this along with strong growth will catalyze the stock towards our $38 Price Target."
Maintain Buy rating, $38 price target.