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Research Alert: CFRA Maintains Buy Opinion On Shares Of Loblaw Companies Limited

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our 12-month target to CAD69 from CAD74, representing ~24x our 2027 EPS of CAD2.88 (lowered from CAD2.95; 2026 EPS lowered to CAD2.61 from CAD2.66). This multiple represents a premium to the company's five-year average forward P/E of 18x, though we note L traded above 20x in the early 2000s. We believe this premium is justified given strong top- and bottom-line growth. Additionally, L has accelerated new store openings (both food and drug retail) in recent years, which should increasingly contribute to revenue as these locations mature. The current earnings headwind from the East Gwillimbury distribution center ramp should ease later this year, though a similar drag is likely as the new Caledon distribution center ramps in 2027. Nevertheless, L is positioned to deliver impressive high-single digit EPS growth over the next few years. We also anticipate a sizable share buyback following the PC Financial sale closure in Q3.

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