CIBC Capital Markets raised its price target on Empire Co. Ltd. (EMP-A.TO) to $58 from $54.
Analyst Mark Petrie maintained an Outperformer rating on shares of the Canadian food retailer following its quarterly results on Thursday.
The stock rose $1.92, or 3.9%, to $51.25 on the Toronto Stock Exchange.
"Empire reported somewhat noisy FQ4 results that we would call essentially in line with our expectations," Petrie said in a note to clients.
"The Canadian consumer continued to seek value, particularly amid greater macro uncertainty and higher fuel prices in recent months," the analyst said. "For grocers, this means more discount and private label, and a focus on promotions."
"This naturally puts EMP at a disadvantage given its underexposure to discount segment, but management has placed increasing emphasis on highlighting - and delivering - value across all banners," Petrie said.