Scotiabank analyst John Zamparo resumed coverage of Aritzia Inc. ( $ATZ.TO +0.15%increase ) with a “sector outperform” rating and a one-year target price of $175. “Despite remarkable growth, Aritzia still holds significant white space to expand its U.S. store base of ~80 (vs. direct peers who average >300),” Mr. Zamparo said in a note to clients. “We believe there’s visibility to high-single-digit store growth and mid-single-digit comp growth leading to 20%+ EPS growth over the next few years.” “Moreover, we see compelling opportunities for category expansion and geographic expansion, which could add ~$0.90 and ~$0.50 in EPS, respectively, in the next five years. Store paybacks of ~12 months are exceptional, and investors can likely still look forward to significant margin expansion from inventory management efforts. Primary risks are the inevitable comps deceleration and volatility inherent in fashion. That said, we believe we’re still early innings on a long-term growth story, yet valuation remains approachable at ~23x C27E EPS,” he said. @JeffMacke