Aritzia stock price target raised to C$92 by BMO on strong growth

Investing.com - BMO Capital raised its price target on Aritzia (TSX:ATZ) (OTC:ATZAF) to C$92.00 from C$84.00 on Friday, while maintaining an Outperform rating following the company’s strong quarterly results. The stock, currently trading near its 52-week high with a market cap of $6.3 billion, has delivered an impressive 75% return over the past year according to InvestingPro data.

The Canadian fashion retailer delivered better-than-expected first-quarter fiscal 2026 performance, demonstrating double-digit comparable sales growth across all channels and geographies, with U.S. sales increasing by 45.1%. The company maintains strong financial health with a robust current ratio of 1.44 and revenue growth of 17.4% in the last twelve months.

BMO Capital noted that Aritzia’s positive momentum has continued into the second quarter, with the company benefiting from reduced China tariffs that led to increased guidance for fiscal 2026.

Aritzia now expects margins to increase year-over-year and projects robust revenue growth between 13% and 19% for fiscal 2026, according to BMO’s research note.

The investment firm highlighted Aritzia’s compelling underlying growth drivers and strong positioning to execute on its U.S. expansion strategy, citing the company’s momentum, growing brand affinity, and "Everyday Luxury" positioning despite ongoing tariff pressures and macroeconomic uncertainties.

In other recent news, Aritzia Inc has been the subject of several analyst reports highlighting important developments. Raymond (NSE:RYMD) James upgraded Aritzia’s stock rating from Market Perform to Outperform, although the price target was reduced to C$55 due to anticipated impacts from global tariffs. The firm noted that tariffs, including a 145% tariff on Chinese goods and a 10% tariff on goods from Vietnam, Cambodia, and Bangladesh, could significantly affect Aritzia’s gross margins, potentially decreasing them by 500-550 basis points. Meanwhile, BMO Capital Markets also adjusted its outlook on Aritzia, maintaining an Outperform rating but lowering the price target from Cdn$80 to Cdn$74. BMO’s analysis revealed a 13% increase in Aritzia’s web traffic in March, driven by consumer interest in new spring product launches. The U.S. market showed particularly strong results, with a 28% increase in web traffic. BMO attributed the sustained web traffic growth to Aritzia’s brand strength and product appeal, though it cited tariff-related risks as a factor in the price target adjustment. Both firms acknowledged Aritzia’s strategic positioning and brand momentum as key factors in navigating these challenges.

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