Q: Can you please comment on the current valuation of Aritzia? I know that they keep upping guidance, so valuation metrics are changing. How high do you see this stock going this year? How is it valued based on FY27 metrics, and how does this compare to historical valuations? This company is a beast. Thank you
5i Research Answer:
P/E on fiscal 2025 (Feb. year end) is 44X; on F2027 34x, on F2028 28x. We are not big fans of price predictions, but very fast growth and strong momentum can be powerful. Average target price is $150.38 and we think that should be quite doable. Probably more if markets are 'normal'. Historical valuations are all over the map (24x to 211x). But 38x to 44x has been fairly normal in the past.