Q: Does GRGD have credible avenues for growth that will allow them to grow into and beyond their current valuation? Or is the stock already priced to perfection?
5i Research Answer:
The stock is certainly not cheap at 42X earnings, but growth is impressive. EPS is set to nearly double from F2025 to F2027 (January year end). It had absolutely incredible same store growth in the Q2 (28.6%) and also raised guidance. The current quarter of course is very important (holiday shopping). but we see no real signs of a slowdown. Fashion of course can be fickle, but with its expansion and momentum we would not be particularly concerned here. Stock-wise, it is getting lots of broker upgrades and a lot more attention as its market cap rises ($8B now). It is certainly priced for growth but we think it still has some upside potential. We do not believe it is widely-owned stock yet, having just been listed for barely a year now.