Research Alert: CFRA Downgrades View On Shares Of Metro Inc. To Sell From Hold
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We cut our 12-month target to CAD79 from CAD102, reflecting ~16x our FY 26 (Sep.) EPS of CAD4.92 (cut from CAD5.12; FY 27's cut to CAD5.61 from CAD5.63). This multiple represents a discount to the company's long-term mean of 17x. While MRU delivered solid Q2 FY 26 results, the key overhang is a Quebec distribution strike now in its fourth week, causing lost sales and incremental costs. Management declined to quantify the impact until a resolution is reached, but investors should expect Q3 FY 26 to bear the full brunt of the strike. Elevated fuel prices pose an additional risk, along with an increasingly competitive operating environment as all grocers seek to improve their value perception. Collectively, we see a cloudy and uncertain outlook, warranting our downgrade to Sell from Hold.
