National Bank of Canada Raises its Price Target for Groupe Dynamite

11:35 AM EDT, 06/18/2025 (MT Newswires) -- National Bank of Canada maintained its outperform rating on the shares of Groupe Dynamite (GRGDF) while raising its price target to C$25.00 from C$23.00, following the clothing retailer's fiscal first-quarter results.

Groupe Dynamite (GRGDF) reported its first-quarter financial results on Tuesday, and posted an adjusted diluted net earnings per share of $0.25 in the quarter, beating consensus and bank's forecast of $0.22.

The bank noted that the first-quarter results were "solid", with a beat across most key metrics.

The company raised its fiscal 2025 same-store sales growth (sssg) guidance to 7.5%-9.0% from 5.0%-6.5%, which the bank noted as conservative. NBF models sssg of 9.5%.

The bank increased its estimates for fiscal 2025 EPS to $1.47 from $1.34 and fiscal 2026 EPS to $1.64 from $1.51, further stating that it sees EPS upside of approximately $0.10 if sssg performance holds through the year.

"We now view GRGD to be a top pick in our discretionary universe along with Dollarama," said the bank. "GRGD trades at 7.1x our NTM EBITDA and 13.2x our NTM EPS, which we view to be inexpensive."

Price: 22.24, Change: +2.62, Percent Change: +13.35

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