Groupe Dynamite Inc: From Growth Stock to Show-Me Narrative; Key Debates After the Reset

研报英文原文证据摘录

Groupe Dynamite Inc: From Growth Stock to Show-Me Narrative; Key Debates After the Reset

Global Research

21 June 2026ab

Groupe Dynamite Inc Equities

CanadaFrom Growth Stock to Show-Me Narrative; Key

Debates After the Reset Retailers, Apparel

12-month rating Buy

12m price target C$108.00We remain bullish on GRGD's LT growth potential despite market concerns:

We view GRGD as a compelling growth stock. We anticipate GRGD to deliver EPS

surprises over the NTM, driving sentiment and stock outperformance. Importantly, Price (19 Jun 2026) C$52.01

investor feedback has been highly polarized following GRGD’s 1Q26 results and 36% RIC: GRGD.TO BBG: GRGD CN

stock decline. Our sense is the discussion has shifted to whether GRGD can maintain its

premium growth trajectory and margins amid slowing comps. The market appears Trading data and key metrics

unlikely to re-engage until GRGD demonstrates that 2H comp acceleration is achievable 52-wk range C$97.45-24.33

without over-reliance on price, while preserving elevated gross margin. Consequently, Market cap. C$5.63b/US$3.98b

we think investors will closely monitor GRGD’s ability to deliver on its 2Q-to-2H comps Shares o/s 108m (COM)

guidance, focusing on three critical elements: 1) steady traffic and transaction growth; Free float 64%

2) continued strength in the US market; and 3) disciplined markdown management. Avg. daily volume ('000) 443

Avg. daily value (m) C$32.5

Key positives from investor feedback: Common s/h equity (01/27E) C$0.35b

1. US growth continues to demonstrate resilience. Although investors P/BV (01/27E) 16.1x

recognized some moderation in 2QTD, many still regarded the 65% US growth in Net debt to EBITDA (01/27E) 0.3x

Q1 as a robust result. This indicates that the US expansion thesis remains intact.