01:19 PM EDT, 04/23/2024 (MT Newswires) -- In its Q4 2024 preview of Aritzia ( ATZAF ), UBS believes the company's fundamentals sequentially improved in fiscal Q4 2024 and the positive trend has carried into FY25.

UBS expects the company to provide solid FY25 operating guidance, implying C$1.85-$1.95 EPS. This should drive modest upward revisions to the Street's C$1.83 forecast. "We think this guide along with a $0.05 Q4 EPS beat should cause ATZ's P/E to expand since sentiment leans bearish, in our view."

The options market is pricing in a +/-13.1% move over the event vs. an 8.2% historical avg. move, but UBS expects less volatility than +/-13.1%.

UBS has a Buy rating on Aritzia ( ATZAF ), with a target of C$50.

Aritzia ( ATZAF ) reports its Q4 results on May 2.

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