Update shared on 21 Nov 2025
Fair value Increased 6.04%Aritzia’s fair value price target has increased from C$100.91 to C$107.00. Analysts cite recent upward revisions to target prices and continued positive outlooks on the company’s growth prospects.
Analyst Commentary
Recent updates from equity research analysts show a broadly optimistic sentiment surrounding Aritzia's future, especially following a series of upward price target revisions. The consensus suggests confidence in both the company's strategy and ability to execute in light of positive industry dynamics.
Bullish Takeaways- Bullish analysts have consistently raised price targets in recent research notes. This reflects renewed confidence in Aritzia's growth trajectory and execution.
- Upgrades also highlight growing expectations for sustained revenue and earnings growth as Aritzia benefits from strong brand momentum and expansion initiatives.
- Maintained outperform and buy ratings signal the market's belief in above-average long-term returns compared to peers.
- Several upward revisions in quick succession indicate that Aritzia is outpacing earlier projections, leading to increasing sentiment around potential valuation upside.
What's in the News
- Aritzia raised its full fiscal 2026 net revenue forecast to a range of $3.3 billion to $3.35 billion, projecting growth of 21% to 22% over fiscal 2025 (Key Developments).
- The company issued updated guidance for the third quarter of 2026, expecting net revenue between $875 million and $900 million. This reflects 20% to 24% growth due to strong comparable sales and new boutique openings, led by performance in the United States and Canada (Key Developments).
- Between June 2 and September 1, 2025, Aritzia repurchased 202,500 shares for CAD 15.3 million and completed the repurchase of a total of 217,700 shares for CAD 16.2 million under its buyback program (Key Developments).
Valuation Changes
- Fair Value Price Target: Increased from CA$100.91 to CA$107.00, reflecting a moderate upward adjustment.
- Discount Rate: Increased slightly from 7.26 percent to 7.43 percent. This indicates a marginally higher risk premium assigned in the updated model.
- Revenue Growth: Decreased modestly from 13.61 percent to 13.48 percent. This points to a marginally lower long-term growth expectation.
- Net Profit Margin: Increased slightly from 10.82 percent to 10.86 percent, signaling a small improvement in projected profitability.
- Future P/E Ratio: Increased from 30.89x to 32.91x. This suggests the market is now willing to pay a higher multiple for expected future earnings.
Disclaimer
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