CIBC Capital Markets maintained its outperformer rating on the shares of Groupe Dynamite (GRGD.TO) and raised its price target to C$100 from C$97.00 ahead of the clothing retailer reporting its fiscal first-quarter financial results.
The bank expects sales momentum to "remain healthy," with "strong" gross margin percentage performance. It also said it continues to see strong sales growth in both Canada and the U.S., led by the Garage banner.
"We continue to see substantial runway for GRGD with International as an emerging - but increasingly important - lever," said analyst Mark Petrie. "Our estimate of 22% SSS growth sits modestly below consensus of 26.4% and reflects deceleration from the 28% growth through the first eight weeks of FQ1 that management shared on the FQ4 call in April."
CIBC expects EBITDA margin up 512 basis points overall. "We should also see solid opex leverage on the top-line strength," Petrie added.
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Price: $77.20, Change: $-2.00, Percent Change: -2.53%