CIBC backs soaring Groupe Dynamite stock with ‘Outperform’ call
The CIBC launched the scope of Groupe Dynamit (GRGD.TO) with a price target of $ 65 and a price target of $ 65, and noted the growth of growth growth.
On Monday, analyst Mark Petrie wrote a note to customers a note that emphasizes the company’s fast supply chain, US store growth and e-commerce ambitions potential.
Groupe Dynamite shares rose by about 176 percent since the company’s public offering at the Toronto Stock Exchange in the autumn of the company last autumn, and Insiders sold approximately 14 percent of the work to $ 21 per share. The company’s sales and earnings have been constantly defeating forecasts since then.
The CIBC’s 65 -dollar target comes to the forefront than the current stock price – the stock is trading at $ 59.20 at 12:20 ET between two percent of Monday’s closing. The CIBC applies earnings floors at a price of 30 times on 2026 estimation, which notes that the consensus is sitting seven percent above.
Petrie says supply chain agility is the company’s descriptive advantage, and about one -third of the products are moving from design to distribution in less than eight weeks. “If we were going to boil the group dynamite up to a power, it would be his supply chain,” he wrote, “he added that the model said that the stale product helps to reduce the product. [and] Excessive signs ”and Groupe dynamite inventory turnover ratios 55 55 percent better than peer average”.
Garage poster is a engine of this growth. Today, 120 US stores operate, but it aims to reach 180 by 2028, and says that CIBC will still leave a chain under a large number of peers ”like American Eagle and Lululemon. Petrie describes the store economy as “compelling ve and new locations now repay the opening costs within about 18 months. CIBC says that there is a development between about 24 months during the public offering and that there is an improvement in the clothing retail, which underlines the brand’s powerful unit economy.
The Bank also emphasizes the difficulty of closing the weak shopping center of the retailer and switching to senior properties, and only the real estate estimates that the “high -grade” strategy can provide more than seven percent sales increase above comparable store gains.
Beyond the US expansion of the Garage brand, Petrie points to potential catalysts in a renewed “Dynamite 3.0” concept-more luxurious and oldest target customer-the company’s first international stores in the UK in 2026. E-commerce still represents less than one of the income, but also represents less than a meaningful room.
