First stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/michael-hakes-top-picks~2579880
Aritzia (ATZ TSX) Artizia is one of our favourite stocks. They just held a capital markets day where they outlined their three to five year plan. They have a long runway of growth in front of them. Currently, they have 68 stores in Canada, but only 44 in the U.S.
They plan to open eight to 10 stores annually in the U.S. This will be complemented by store expansions at three to five annually. This means low double-digit annual square footage growth. Ecommerce is also expected to stay strong.
We see sales approaching $3.8 billion by 2027 from the $2 billion expected in Feb 2023.
We think the stock to trade up into the $65.00 range over the next 12-18 months as they continue to roll out their strategy.
TOP PICK
Aritzia Inc.(ATZ-T)
06/12/2022 at 07:00pm
One of his favourites. Long runway for growth. 68 stores in Canada, but only 44 in the US. Plan to open 8-10 stores per year in the US, plus expansion of 3-5 stores. E-commerce expected to stay very strong. By 2027, sales could approach 4B from the 2B at end of Feb 2023. Sees it trading in the $65 range next 12 months. One of the best times to buy a retail stock is when its early stages in the US. No dividend. (Analysts’ price target is $61.86)
Specialty Stores
Michael Hakes - CFA, MBA
$49.360
Owned