$L.TO

Loblaw on "Good Footing" to Deliver 8% to 10% EPS Growth Target, says National Bank

Loblaw Companies (L.TO) remains on a good footing to deliver against its financial framework of 8% to 10% EPS growth, writes National Bank analyst Vishal Shreedhar after meeting with Loblaw management including with chief financial officer Richard Dufresne.Management is confident in its ability to navigate the current macro backdrop, as second-quarter trends so far appear to be stable q/q (top and bottom line) and the consumer backdrop seems resilient.Loblaw also expressed confidence in its real estate growth plans, suggesting it is gaining market share, particularly in the discount grocery segment. T&T, whose stores in the U.S. are beating expectations, is said to have a long growth runway.In Shoppers Drug Mart, generic versions of semaglutide, commonly known under the brand name Ozempic, are expected to be positive (higher gross margin rate and higher volumes to offset lower prices). Loblaw also aims to roll out a new store concept for Shoppers with focus on mid-tier beauty.Shreedhar is keeping an outperform rating and $67.00 price target on the shares of Loblaw. "Given an uncertain macro backdrop, we favour proven staples such as L to add resiliency to portfolios."

CIBC Lowers George Weston's Price Target By $10

CIBC Capital Markets maintained its outperformer rating on the shares of George Weston (WN.TO), but at the same time reduced its price target to C$117.00 from $127.00 in a note dated May 12, after the company reported its first quarter results.George Weston's Q1 results came with "few surprises" given the known results of both Loblaw Companies (L.TO) and Choice Properties Real Estate Investment Trust (CHP-UN.TO), said CIBC."Its capital allocation priorities remain unchanged, with the recent announcement of Choice acquiring First Capital alongside Kingsett not expected to alter buyback activity," said CIBC. "The implied Holdco discount sits at 14.8% today," added CIBC in the note dated May 12.CIBC continues to forecast Weston repurchasing near $1B of shares in F2026 and F2027, in line with activity in prior years. It also expects "healthy" cash flow generation to continue, driven by Loblaw dividends, Choice distributions and participation in Loblaw's NCIB."Our target Holdco discount stays at 9%, and with our updated Loblaw price target of $69 and the CIBC REIT team's price target of $16.50/unit for Choice Properties, our price target for WN moves to $117 (was $127)," added CIBC. "George Weston remains Outperformer rated."Though not specifically related to the potential First Capital transaction, CIBC highlights that its REIT team upgraded CHP to Outperformer rated effective April 30, primarily on account of current valuation levels.Price: $93.33, Change: $-3.34, Percent Change: -3.46%

George Weston In 2026 Outlook Adds It Expects To Use Excess Cash to Repurchase Shares

George Weston 2026 Outlook Remains Unchanged and It Continues to Expect Adjusted Net Earnings to Increase Due to Results From Its Operating Segments

George Weston Quarterly Common Share Dividend To Be Increased by 8.0%

George Weston Q1 Adjusted diluted net earnings per common share $0.91, an increase of $0.05, or 5.8%

George Weston Q1 Revenue was $14,639M, an increase of $585 million, or 4.2%

Loblaw Price Target Lowered to $69 at CIBC

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."

Loblaw's Q1 Adjusted Earnings, Revenue Higher, Announces 10% Dividend Hike

Loblaw Companies (L.TO) reported higher first quarter adjusted earnings and revenue, even if both were flat to lower against expectations, while it raised its dividend by 10% and guided on its growth expectations for fiscal 2026.Adjusted net income, which excludes most one-time items, rose 6.8% to $609 million, or $0.52 per diluted share, from $570 million, or $0.47 per diluted share, in the prior year period. The result met analysts expectations of $0.52 per share, according to FactSet.Revenue advanced 4.2% to $14.5 billion, over the same period, just below the $14.6 billion expected by analysts. Loblaw noted that food retail (Loblaw) same-store sales increased by 2.4%, while drug retail (Shoppers Drug Mart) same-store sales increased by 4.1%. E-commerce sales jumped by 20.3%.In fiscal 2026, Loblaw is guiding to high single-digits growth for adjusted net earnings per share, and for its Retail business to grow earnings faster than sales. It will invest $2.4 billion in gross capital expenditures in its stores and distribution centres.Loblaw will pay its higher dividend of $0.155 per share (from $0.141) on July 1, to shareholders of record on June 15, the 15th consecutive year of dividend increases.The company separately announced the Toronto Stock Exchange has accepted its intention to buy back up to 58.1 million shares from May 6, for one year. Loblaw bought back 36.9 million shares under its prior NCIB at a weighted average price of $59.85.Loblaw shares closed up $1.18, to $63.16 on Tuesday on the Toronto Stock Exchange.

Loblaw Announcing Normal Course Issuer Bid Representing Near 5% of Issued and Outstanding Common Shares

Earnings Flash (L.TO) Loblaw Reports Q1 Revenue $14.48B, Vs FactSet Consensus Forecast $14.566.8B

Earnings Flash (L.TO) Loblaw Companies Limited Posts Q1 Adjusted EPS $0.52 per Share, Meets FactSet Estimate

Loblaw Quarterly Common Share Dividend Increased by 10%

Loblaw Q1 Adjusted Diluted EPS $0.52, an Increase of $0.05, or 10.6%

Loblaw Q1 Retail Revenue was $14,484 Million

EQB Gets Federal Govt Approval to Acquire Loblaw's PC Financial

EQB (EQB.TO) has received Federal approval to proceed with its acquisition of PC Financial from Loblaw Companies (L.TO), the company said on Tuesday.The approval follows a recommendation from the Office of the Superintendent of Financial Institutions (OSFI), and Competition Bureau clearance in March.EQB announced last December that it was acquiring PC Financial in a deal valued at $800 million, in cash and shares. Loblaw would take a minimum 17% equity stake in the company, and EQB would become the exclusive financial partner of the PC Optimum loyalty program.The acquisition will see EQB expand its total customer base to 3.3 million Canadians and add $5.8 billion in assets and $800 million in direct retail deposits. EQB said it will be able to offer everyday banking, lending, payments, and rewards through a single integrated ecosystem to the more than 18 million active PC Optimum loyalty members.The acquisition is expected to close in the summer.EQB shares were last seen up $0.98, to $122.24, on the Toronto Stock Exchange. Loblaw shares are up $0.58, to 62.56.Price: $122.37, Change: $+1.11, Percent Change: +0.92%

Loblaw Partnering with Canadian AI Company Shakudo to Accelerate Its AI Adoption and Deployment

Metro Price Target Lowered to $97 at Desjardins

Desjardins lowered its price target on Metro Inc. (MRU.TO) to $97 from $99.Analyst Chris Li maintained a Hold rating on shares of the Canadian supermarket chain following its quarterly results on Wednesday."Despite solid results with EPS growth returning to MRU's 8-10% target, the stock underperformed," Li said in a note to clients. "We attribute this mainly to concerns around slowing food SSSG (rising competition and moderating consumption) and limited earnings visibility from the produce DC strike.""These are masking MRU's success in navigating through a challenging environment," the analyst said."Given MRU's large valuation discount to Loblaw Cos. Ltd. (L.TO) (17x vs 23x forward P/E), we expect improving earnings visibility to be a key driver of valuation improvement."