Street Calls of the Week
Investing.com - Truist Securities raised its price target on Aritzia (TSX:ATZ) (OTC:ATZAF) to C$102.00 from C$95.00 on Friday, while maintaining a Buy rating on the Canadian fashion retailer.
The price target increase follows Aritzia’s second-quarter results, which Truist noted came in "significantly ahead" of both the firm’s and Street expectations. The retailer has maintained strong sales momentum despite broader concerns about discretionary consumer spending.
Truist highlighted that Aritzia’s third-quarter quarter-to-date trends are largely in line with second-quarter performance, showing approximately 30% year-over-year growth. This consistent performance comes amid challenging macroeconomic conditions that have affected other retailers in the apparel sector.
The investment firm pointed to several factors supporting Aritzia’s growth, including "robust brand heat," a strong pipeline of new store openings, improving marketing initiatives, and expanding e-commerce capabilities. Truist specifically mentioned that Aritzia plans to launch a mobile app later this month.
Truist views Aritzia as "one of the best-positioned apparel companies today," citing its impressive topline momentum and margin expansion, with "substantial growth opportunities ahead" justifying the higher price target.
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