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Investing.com - Truist Securities maintained its Buy rating on Aritzia Inc (TSX:ATZ) with a price target of Cdn$102.00, following the company’s second-quarter performance that exceeded expectations. According to InvestingPro, the stock has shown remarkable momentum with a 71% gain year-to-date, trading near its 52-week high.
The Canadian fashion retailer reported approximately 32% revenue growth in the second quarter, significantly outpacing the company’s own guidance of 19%-22%. The company maintains strong financials with a gross profit margin of 45% and an impressive revenue CAGR of 23% over the past five years. For the third quarter, Aritzia is guiding to 20%-24% year-over-year growth despite quarter-to-date trends through the first few weeks tracking in line with the second quarter’s 30%+ growth rate.
Truist Securities views this guidance as prudent, noting that the highest volume shopping weeks remain ahead, the company faces comparisons to a strong November 2024, and consumer outlook remains uncertain. Despite these factors, the research firm sees potential for material upside. InvestingPro analysis reveals 18 additional key insights about Aritzia’s financial health and growth prospects, available exclusively to subscribers.
The company’s Super Puff coat is identified as a key item expected to contribute more to already-strong sales trends as weather continues to cool, following what has been described as a relatively warm fall season so far.
Aritzia’s first app, scheduled to launch later in October 2025, is viewed by Truist Securities as an important potential catalyst for the company’s continued growth.
In other recent news, BMO Capital has adjusted its outlook on Aritzia by raising the company’s price target to C$100 from C$92. This adjustment comes as BMO Capital maintains an Outperform rating on the stock. The decision was influenced by an analysis of web traffic data for August 2025, revealing an 18% growth in total traffic, which follows a 20% increase in July. This indicates a strong performance trend in the U.S. market. These developments are part of a broader assessment of Aritzia’s recent activities.
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