CIBC Capital Markets maintained its neutral rating on the shares of Leon's Furniture (LNF.TO) and lowered its price target to C$28.00 from C$31.00 after the company reported its first-quarter results on Thursday.
The bank noted the company's Q1 same-store sales growth was below expectations, reflecting a "strong prior-year comp and a consumer environment that remains challenging".
"Despite these headwinds, Leon's continues to execute on its strategy, growing share and maintaining stable margins," said analyst Ty Collin. "Although comps get a bit easier as the year progresses, we continue to believe that more material improvement depends on a stronger Canadian consumer, which is uncertain amid growing macro volatility."
CIBC also believes the recent exit of a competitor may ease competitive intensity in the commercial appliance business, though any benefit is expected to materialize gradually in the second half of 2026 and into 2027.
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