GRGD: Still in fashion: Despite share price reaction, fundamental story/opportunity remain compelling

研报英文原文证据摘录

GRGD: Still in fashion: Despite share price reaction, fundamental story/opportunity remain compelling

RBC Dominion Securities Inc.

Irene Nattel (Analyst)

(514) 878-7262, irene.nattel@rbccm.com

Martin Gravel, CFA (Associate Analyst)

(514) 878-7264, martin.gravel@rbccm.com

Kseniia Tokarieva (Associate)

(416) 842-9922, kseniia.tokarieva@rbccm.com

June 16, 2026

Groupe Dynamite Inc. Outperform

TSX: GRGD; CAD 47.74RESEARCH Still in fashion: Despite share price reaction, Price Target CAD 107.00

fundamental story/opportunity remain compelling Scenario Analysis*

Our view: Based on our analysis, share price decline >30% is overdone

and incongruent with GRGD's growth algorithm and relative economics DownsideScenario CurrentPrice TargetPrice ScenarioUpside

of the business, both of which remain intact. Nothing in today's release

changes our view of GRGD as a compelling, high quality, high growth 46.004% 47.74 107.00124% 143.00200%

story in Canadian retail and in our view, the magnitude of the valuation

*Implied Total ReturnsEQUITY compression and discount to ATZ is inconsistent with the growth trajectory, Key Statistics

FCF profile/return of capital optionality, exceptional return metrics, and Shares O/S (MM): 108.7 Market Cap (MM): 5,191

international expansion opportunity. Reiterating our constructive view, PT Dividend: 0.00 Yield: 0.0%

unchanged at $107. Float (MM): 19.8 Avg. Daily Volume: 611,747 3-Yr. Est. EPS Growth: 24.76%

Strategic Ownership: Andrew Lutfy equity interest ~81.5%.

Key points:

Don’t throw the baby out with the bath water. While Q1 constant FX SSS RBC Estimates

+24.7% / Q2 to date +11% is clearly agitating the market, it’s important not FY Jan 2025A 2026E 2027E 2028E

EPS, Ops Diluted 2.25 3.14 3.68 4.37 to lose sight of the broader context: Prev. 3.67 4.32