Groupe Dynamite Inc "Still An Attractive Growth Stock; Maintain Buy Rating"

研报英文原文证据摘录

Groupe Dynamite Inc "Still An Attractive Growth Stock; Maintain Buy Rating"

Global Research

17 June 2026ab

Groupe Dynamite Inc Equities

CanadaStill An Attractive Growth Stock; Maintain Buy

Rating Retailers, Apparel

12-month rating Buy

12m price target C$108.00We remain optimistic on GRGD's long-term growth potential:

Prior : C$125.00

We believe GRGD is an attractive growth stock. We see its Garage brand as a key growth

engine given its US white space opportunities and ongoing shift to high-quality stores. Price (16 Jun 2026) C$47.74

Although the company's deceleration in 2QTD comp sales led to a 35.9% drop in its RIC: GRGD.TO BBG: GRGD CN

stock price, our fundamental outlook on GRGD's long-term potential remains

unchanged. We thus forecast an 18% 5-yr. EPS CAGR. We believe this robust growth Trading data and key metrics

outlook and GRGD's best-in-class margin profile remain underappreciated at just 13x 52-wk range C$97.45-22.72

FY2 P/E. We anticipate strong growth over the NTM to catalyze P/E expansion and Market cap. C$5.17b/US$3.69b

GRGD's stock towards our C$108 PT. Shares o/s 108m (COM)

Free float 64%

Three key takeaways from GRGD's Q1 report keep us bullish: Avg. daily volume ('000) 401

1. Slowing 2QTD momentum, but likely to level off. GRGD noted 2QTD comp Avg. daily value (m) C$30.5

sales are up 9% y/y (+11% excl. FX). Although this reflects a significant slowdown Common s/h equity (01/27E) C$0.35b

from the +22.6% in Q1, we see HSD% as a sustainable run rate given more steady P/BV (01/27E) 14.8x

compares going forward. Additionally, we foresee potential for growth to Net debt to EBITDA (01/27E) 0.3x

accelerate in 2H, supported by GRGD's continued investments in Garage US.

EPS (UBS, diluted) (CAD)

2. Underappreciated GM% resilience.