Canadian Imperial Bank of Commerce Upgrades Toromont Industries (TSE:TIH) to Strong-Buy

Key Points

• CIBC upgraded Toromont Industries from “hold” to “strong buy.” Overall analyst sentiment remains positive, with a consensus “buy” rating and a C$246.60 average price target.
• Analyst updates were mixed: Stifel raised its target to C$260, while Canaccord cut its target to C$250; both maintained positive ratings.
• Toromont reported quarterly earnings of C$2.33 per share and revenue of C$1.65 billion. Analysts expect full-year EPS of C$6.59.

Toromont Industries (TSE:TIH - Get Free Report) was upgraded by investment analysts at Canadian Imperial Bank of Commerce from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

Several other analysts have also recently issued reports on the company. Raymond James Financial upped their price objective on Toromont Industries from C$235.00 to C$250.00 and gave the company an "outperform" rating in a research note on Thursday, July 30th. Royal Bank Of Canada decreased their target price on Toromont Industries from C$265.00 to C$261.00 and set an "outperform" rating for the company in a research report on Tuesday. Canaccord Genuity Group lowered their price target on Toromont Industries from C$260.00 to C$250.00 and set a "buy" rating for the company in a report on Wednesday. BMO Capital Markets boosted their price target on Toromont Industries from C$247.00 to C$248.00 and gave the company an "outperform" rating in a report on Thursday, July 30th. Finally, Stifel Nicolaus upped their price target on Toromont Industries from C$250.00 to C$260.00 and gave the company a "buy" rating in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of C$246.60.

Toromont Industries Price Performance

TIH opened at C$198.13 on Tuesday. The company has a 50-day moving average of C$209.37 and a 200-day moving average of C$209.65. The company has a market capitalization of C$16.16 billion, a P/E ratio of 31.55, a PEG ratio of 3.72 and a beta of 0.83. Toromont Industries has a 1-year low of C$155.85 and a 1-year high of C$243.50. The company has a debt-to-equity ratio of 23.71, a quick ratio of 1.38 and a current ratio of 2.79.

Toromont Industries (TSE:TIH - Get Free Report) last issued its earnings results on Monday, November 2nd. The company reported C$2.33 earnings per share (EPS) for the quarter. Toromont Industries had a net margin of 9.60% and a return on equity of 16.55%. The business had revenue of C$1.65 billion for the quarter. Equities analysts expect that Toromont Industries will post 6.59 EPS for the current fiscal year.

Key Stories Impacting Toromont Industries

Here are the key news stories impacting Toromont Industries this week:

• Positive Sentiment: Stifel Nicolaus raised its price target to C$260 from C$250 and kept a buy rating; Scotiabank lifted its target to C$244 from C$239 and retained a sector outperform rating. Both targets imply substantial upside from the prices cited in the reports. Stifel Nicolaus ratings Scotiabank ratings
• Neutral Sentiment: Toromont reported higher Q3 earnings year over year. The supplied background cites quarterly EPS of C$2.33 and revenue of C$1.65 billion; the articles do not provide enough detail to assess how results compared with market expectations. Toromont Industries Q3 Earnings Rise YoY
• Negative Sentiment: Canaccord Genuity cut its target to C$250 from C$260, while National Bank Financial lowered its target to C$254 from C$261. Both retained positive ratings, but the reductions temper the otherwise supportive analyst updates. Canaccord Genuity ratings National Bank Financial ratings

Toromont Industries Company Profile

Toromont operates through two business segments: The Equipment Group and CIMCO. The Equipment Group includes one of the larger Caterpillar dealerships by revenue and geographic territory - spanning the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Québec, Ontario, and Manitoba in addition to most of the territory of Nunavut. In addition, the Equipment Group includes industry leading rental operations, and a complementary material handling business.

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