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Investing.com - Raymond James initiated coverage on Groupe Dynamite Inc (TSX:GRGD) with an Outperform rating and a price target of C$42.00.
The investment firm applied a forward price-to-earnings ratio of 22.5x on its fiscal 2026 and fiscal 2027 earnings per share estimates to arrive at the target price.
Raymond James acknowledged that its target multiple represents a premium compared to Groupe Dynamite’s broader peer group but justified this premium based on the company’s "attractive longer-term growth profile."
The firm noted that its valuation multiple for Groupe Dynamite remains at a discount to its target multiple for Aritzia, which is closer to 27.0x forward earnings per share.
Raymond James recognized that some investors might view its valuation approach as "aggressive" given Groupe Dynamite’s limited history as a public company, but emphasized that it sees "considerable runway for the business to expand."
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