Aritzia Inc. (TSE:ATZ) Receives Average Rating of “Moderate Buy” from Analysts
Analysts are cautiously optimistic about Aritzia Inc. (TSE:ATZ) as they assign an average recommendation of “Moderate Buy” to the stock.
Analyst Ratings
Out of eight ratings firms, one analyst has given the stock a sell recommendation, one a hold recommendation, and six a buy recommendation. The average twelve-month price target among analysts is C$41.60.
Price Target Adjustments
Several research analysts have recently adjusted their price targets for Aritzia.
- UBS Group raised its target price from C$39.00 to C$50.00.
- CIBC increased its target price from C$37.00 to C$41.00.
- TD Securities lowered its target price from C$45.00 to C$43.00.
- Canaccord Genuity Group raised its target price from C$38.00 to C$40.00.
- Stifel Nicolaus increased its target price from C$34.00 to C$42.00.
Financial Performance
Aritzia has reported strong financial performance recently.
- Revenue in the fiscal year ended February 28, 2023, grew by 26% to C$1.24 billion.
- Net income increased by 37% to C$63.9 million.
Valuation
Based on traditional valuation metrics, Aritzia is currently trading at:
- P/E ratio of 49.99
- P/E/G ratio of 1.19
Insider Activity
In May 2023, Senior Officer David John Maciver sold 173,254 shares of the company’s stock, valued at over C$6.3 million. Insiders currently own 0.55% of the company.
Conclusion
Analysts are generally positive about Aritzia’s prospects, assigning a “Moderate Buy” rating to the stock. However, investors should note the stock’s relatively high valuation and consider it in the context of their own investment goals and risk tolerance before making any investment decisions.
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Mehek