Aritzia’s Promising U.S. Growth and Strategic Positioning Earns Buy Rating

BMO Capital analyst Stephen Macleod maintained a Buy rating on Aritzia (ATZAF – Research Report) on May 16 and set a price target of C$75.00.

Stephen Macleod has given his Buy rating due to a combination of factors, including Aritzia’s strong web traffic growth and customer engagement, particularly in the U.S. Despite a moderation in growth, the overall increase in web traffic reflects positive consumer response to Aritzia’s spring and early summer product launches. The easing of U.S.-China trade tensions also contributes positively to Aritzia’s outlook.
Aritzia’s strategic positioning in the market and its potential for significant growth in the U.S. are key elements in Macleod’s assessment. The company has shown a transition towards revenue acceleration and margin expansion, which are promising indicators for future performance. While there are some uncertainties due to tariff headwinds, the long-term fundamentals of the company present an attractive risk-reward scenario for investors.

Macleod covers the Consumer Cyclical sector, focusing on stocks such as Aritzia, CCL Industries, and Gildan Activewear. According to TipRanks, Macleod has an average return of 11.7% and a 61.31% success rate on recommended stocks.

In another report released on May 2, TD Securities also maintained a Buy rating on the stock with a C$70.00 price target.