Aritzia price target raised to C$80 from C$75 at BMO Capital

Published 13/06/2025, 14:32
Aritzia price target raised to C$80 from C$75 at BMO Capital

BMO Capital raised its price target on Aritzia stock (ATZ:CN) (OTC:ATZAF) to C$80 from C$75 while maintaining an Outperform rating, citing the company’s U.S. growth acceleration and easing tariff situation.

The firm’s analysis of May 2025 web traffic showed mixed results, with total web traffic growth remaining positive but moderating to 2% in May compared to 7% in April. U.S. growth accelerated to 26% from 17% in April, while Canadian traffic declined 17% compared to a 3% drop in April.

BMO Capital noted that traffic growth reflected customer engagement with Aritzia’s summer launches and "Into the Sun" sale. The firm also highlighted that the easing tariff situation, while fluid, provides support for the company’s sales and margins.

The investment bank believes Aritzia is well-positioned to execute on its significant U.S. growth opportunity, reflecting strong momentum, growing brand affinity, and its "Everyday Luxury" positioning.

The new C$80 price target represents 14.0x 2027E EV/EBITDA and reflects easing near-term tariff-related risks, according to BMO Capital’s analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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