Aritzia Inc (TSX:ATZ) has seen its price target boosted by Jefferies analysts to C$140 from C$114, who see brand momentum and the ‘Buy’-rated retailer’s omnichannel strategy driving upside.
The updated price target implies upside of roughly 19% from Monday’s closing price.
The analysts wrote that Aritzia is “well-positioned for top-line growth driven by store and channel expansion, margin improvement from mix shifts, scale benefits, and pricing.”
They highlighted the company’s recent mobile app launch and international site expansion as initiatives expected to bolster eCommerce, which is projected to more than double by fiscal 2027.
Foot traffic and retail performance also remain encouraging, according to Jefferies. After visiting Aritzia’s new Flatiron flagship, the analysts wrote that they observed “encouraging foot traffic results, with high conversion rates and the product selling faster than expected.”
The firm noted that Aritzia’s long-term growth plan anticipates retail expansion of more than 50%, supported by a target footprint of 150+ locations and at least 10 US store openings annually.
Brand perception is also improving, the analysts noted, with Morning Consult survey data showing gains in buzz, value, favorability, and purchasing consideration.
“As consumer perception is moving in the right direction, this improvement is translating into tangible demand indicators, as reflected in recent alt data trends,” the analysts wrote.
Jefferies also pointed to alternative data suggesting strong same-store sales (SSS) performance, leading them to raise their Q3 2026 SSS estimate to 17.0% from 15.5%, compared with the Street’s 17.4% estimate.
As a result, Jefferies slightly raised its third-quarter sales and EPS estimates, projecting revenue of C$916 million versus prior estimates of C$904 million and Q3 EPS of C$0.87, up from C$0.85 previously.
The analysts wrote that these estimates reflect “strong full-price selling based on our channel checks and encouraging data results.”