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Loblaw Price Target Lowered to $69 at CIBC

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-- CIBC Capital Markets lowered its price target on Loblaw Cos. Ltd. (L.TO) to $69 from $75.

Analyst Mark Petrie maintained an Outperformer rating on shares on the Canadian retailer following its quarterly results on Wednesday.

The stock declined $3.43, or 5.4%, to $59.73 on the Toronto Stock Exchange.

"Loblaw shares reacted sharply negative to solid Q1 results headlined by leading food same-store sales (SSS) growth and healthy margin expansion," Petrie said in a note to clients.

"We view fundamentals as healthy, and the weakness in shares as more reflective of a market that has shifted away from placing such a clear premium on defensiveness," the analyst said.

"We moderate our target multiple to reflect this shift - now 12.5x EV/EBITDA, was 13.5x - but still see Loblaw as the go-to Staples name."

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Loblaw Price Target Lowered to $69 at CIBC | FINWIRES