Scotiabank Raises Aritzia Price Target
Scotiabank increased its price target for Canadian apparel retailer Aritzia to C$185, up from the previous target of C$175, while maintaining a Sector Outperform rating. The bank highlighted the retailer’s five‑year growth strategy presented at its investor day, which it believes can sustain earnings expansion and justify a higher valuation. Scotiabank projects Aritzia to deliver annual earnings‑per‑share growth of more than 20 % over the next five years, providing a basis for further share‑price appreciation. Accordingly, the valuation multiple applied to the retailer was raised to approximately 27 times the average of its fiscal 2028 and fiscal 2029 earnings estimates, up from roughly 25 times previously. The bank noted that the higher multiple reflects confidence in Aritzia’s ability to execute its growth plan, though it cautioned that failure to meet sales and margin targets could limit further valuation gains.