TSX:ATZ - Post Discussion
Aritzia Inc
> ATZ Maintained at Market Perform at BMO; Price Target C$32
Post by
davgro on Sep 29, 2023 11:19am
ATZ Maintained at Market Perform at BMO; Price Target C$32
Aritzia Maintained at Market Perform at BMO as Fiscal Q2 Beat Expectations but Outlook Weak; Price Target Kept at C$32.00 2023-09-29 11:14:02 AM ET (MT Newswires)
11:14 AM EDT, 09/29/2023 (MT Newswires) -- BMO Capital Markets on Friday reiterated its market-perform rating on the shares of Aritzia (ATZ.TO) and its C$32.00 price target after the retailer reported better than expected fiscal second-quarter results but a weak outlook for the second half.
"Q2/24 was above forecast, but an H2 expectation for ongoing negative comps (down ~MSD) and margin pressure (although moderating from Q2 "peak" pressures) led to 2024E guidance being reiterated (net revenue +2-7%, adj. EBITDA margin down ~600-650 bps). Positively, new store performance is a bright spot (paybacks continue to be 1-year or less) and the new DC has opened as scheduled. While management execution on its 2025E margin rebuild could be positive for the stock, moderating sales and ongoing margin headwinds are likely to weigh in the near term," analyst Stephen MacLeod wrote.
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