CIBC Capital Markets maintained its outperformer rating on the shares of Saputo (SAP.TO) and its C$47.00 price target ahead of the dairy-product company reporting its fiscal fourth-quarter financial results.
The bank continues to see the underlying fundamentals in the U.S. business as "healthy," particularly as demand for powders and by-products grow, and exports climb, it said. For Canada, it expects volume strength to drive revenue growth.
CIBC expects a "strong" quarter in the U.K. with EBITDA and sales growth year-over-year, while it forecast "more neutral" year-over-year performance in Australia, with seasonality driving lower milk volumes than in Q3 of fiscal 2026. It also said that it is "comfortable looking further ahead" than is its custom given the noise of the Argentina divestment and balance sheet flexibility that will come with the proceeds.
"While fundamentals remain solid across geographies, commodity volatility in the U.S. - particularly for butter - is expected to weigh on margins, along with some additional cost pressures," said analyst Mark Petrie. "Divesting Argentina is a positive step, and a potential catalyst for increased share buybacks."
Price: $41.45, Change: $-0.10, Percent Change: -0.24%