Aritzia Price Target Lifted to $155.00 at CIBC Ahead of Q4 Results
CIBC Capital Markets upped its price target on the shares of Aritzia (ATZ.TO) by $7.00 to $155.00 ahead of the company reporting its fiscal fourth-quarter results on May 7.Analyst Mark Petrie, who is maintaining an outperformer rating on the company, notes third-quarter Bloomberg Alt data continued to show solid growth trends for Aritzia, with U.S. sales up 52%, on top of 40% growth last year. "This is a slight deceleration from 56% in FQ3, though Q3 was lapping a lower growth rate, so the two-year stack improved by nearly 10 percentage points," Petrie notes.U.S. transaction growth also shows healthy trends, up 37% Y/Y, and CIBC estimates U.S. sales growth of 37%, along with Canada sales up 16% Y/Y."We forecast online sales growth of 36% as penetration continues to increase, supported by momentum from the Aritzia App and the halo effect around new store openings." Petrie is also forecasting in-store sales growth of 24%, for total revenue growth of 29% (consensus 27%). Both CIBC estimates and consensus sit above guidance of 23%-26% growth.Price: $139.50, Change: $-6.92, Percent Change: -4.73%