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BMO Capital raised its price target on Groupe Dynamite Inc (GRGD:CN) to Cdn$28.00 from Cdn$24.00 on Wednesday, while maintaining an Outperform rating on the stock.
The price target increase follows the company’s first-quarter fiscal 2025 results, which exceeded expectations with comparable sales growth of 13% and adjusted EBITDA growth of 20%.
BMO Capital noted that sales momentum has continued into the second quarter, with comparable sales trending "tangibly higher" than previous periods.
The research firm cited several positive factors supporting Groupe Dynamite’s outlook, including easing tariff-related risks, the company’s positioning as a "luxury-inspired affordable indulgence," supply chain flexibility, and ability to respond quickly to in-season trends.
BMO Capital expects Groupe Dynamite to achieve mid-teens annual adjusted EBITDA growth, driven by its strong position in the North American fast fashion women’s apparel market.
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