Research
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."
$L.TO