TSX:ATZ - Post Discussion
Post by
retiredcf on Jun 20, 2023 6:46am
Top Pick
Last stock in the clip; he and his family also own it personally. GLTA https://www.bnnbloomberg.ca/video/teal-linde-s-top-picks~2710898
Aritzia (ATZ TSX) Last purchased on May 3, 2023, at $33.35 Aritzia’s stocks took a major hit last month after announcing strong quarterly results. It disclosed increased investment spending to support its industry-leading growth that is expected to contribute to a decline in adjusted EBITDA margins from 16 per cent to 12 per cent for the current fiscal year. Management, however, expects EBITDA margins to return to 16 per cent the following year as transitory distribution center pre-opening costs, inflationary pressures, and inventory storage costs subside. The company is now trading at 25 times the current fiscal year’s expected earnings. But upon normalized earnings expected next year, it is trading at a forward P/E of ~15. Given the company’s track record and ability to grow double digits in the years ahead in terms of retail square footage, revenues and EPS, Aritzia is unlikely to trade at such a low P/E by this time next year and therefore should be trading higher.
TOP PICK
Aritzia Inc.(ATZ-T)
19/06/2023
It had strong quarterly results but announced that it will increase investment spending which will affect margins. This is a temporary situation which should improve after a year. There is 20 to 30% upside. It has core and staple products and management is methodical and meticulous in their expansion. Its square footage is growing by about 15% so revenue should increase along with earnings. Buy 5 Hold 4 Sell 0
(Analysts’ price target is $50.24)
Specialty Stores
Teale Linde
$36.230
Owned
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