Aritzia Inc. (TSE:ATZ) reached a new 52-week high on January 4, 2024, following an upgrade from the Royal Bank of Canada, which raised its price target for the stock from C$116.00 to C$150.00. The upgrade contributed to a significant increase in trading activity, with the stock peaking at C$126.02 before closing at C$123.80. During the day, the company saw a volume of 859,206 shares exchanged, up from a previous close of C$121.40.
Analysts’ enthusiasm for Aritzia is evident, with several firms issuing revised price targets. Canaccord Genuity Group increased its target from C$135.00 to C$164.00, maintaining a “buy” rating. BMO Capital Markets also raised its target, adjusting it from C$133.00 to C$136.00, while reaffirming their “outperform” rating. Truist Financial raised its target to C$157.00, and Wells Fargo & Company increased its target from C$110.00 to C$120.00. Desjardins followed suit, lifting its price target from C$125.00 to C$133.00 and issuing a “buy” rating.
Aritzia currently enjoys a favorable outlook from analysts, with one analyst recommending a Strong Buy, nine issuing a Buy rating, and one giving it a Hold rating. According to data from MarketBeat.com, the average rating stands at “Buy” with an average target price of C$135.92.
Company Financials and Performance Indicators
The recent performance of Aritzia’s stock is underscored by its financial metrics. The company has a market capitalization of C$15.16 billion, a price-to-earnings (P/E) ratio of 54.78, and a P/E/G ratio of 1.19. Aritzia reported a debt-to-equity ratio of 93.51, a quick ratio of 0.19, and a current ratio of 1.29. The stock’s 50-day moving average price stands at C$110.38, while the 200-day moving average is C$90.94.
On January 8, 2024, Aritzia announced its quarterly earnings, reporting earnings of C$1.10 per share. The company achieved a net margin of 5.24% and a return on equity of 15.24%, with total revenue for the quarter reaching C$1.04 billion. Analysts project that Aritzia Inc. will report an earnings per share (EPS) of approximately 1.78 for the current year.
Aritzia is recognized as an integrated design house that specializes in exclusive fashion brands. The company designs and sells a range of apparel and accessories under its brand, which includes items such as blouses, T-shirts, pants, dresses, sweaters, jackets, and more. Its primary revenue streams come from retail sales, supplemented by eCommerce.
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