Canadian Imperial Bank of Commerce Forecasts Strong Price Appreciation for Premium Brands (TSE:PBH) Stock

Key Points

• Canadian Imperial Bank of Commerce raised its price target for Premium Brands from C$110 to C$115, implying roughly a 27.34% upside from the stock's previous close.
• Analyst sentiment is broadly positive with 1 Strong Buy, 11 Buy and 1 Hold, and a consensus target price of C$118.62.
• Shares traded at C$90.31; the company has a market cap of C$4.7B but a high P/E of 100.34 and a debt-to-equity ratio of 206.42, with the latest quarter showing C$0.83 EPS on C$2.05B revenue — signalling potential valuation and leverage risks.

Premium Brands (TSE:PBH - Get Free Report) had its price objective lifted by equities researchers at Canadian Imperial Bank of Commerce from C$110.00 to C$115.00 in a research note issued to investors on Friday,BayStreet.CA reports. Canadian Imperial Bank of Commerce's target price points to a potential upside of 27.34% from the stock's previous close.

A number of other equities analysts also recently commented on the stock. TD Securities cut their price objective on shares of Premium Brands from C$160.00 to C$140.00 and set a "buy" rating for the company in a research report on Monday, March 23rd. Ventum Financial set a C$124.00 target price on Premium Brands and gave the stock a "buy" rating in a research note on Wednesday, April 22nd. BMO Capital Markets decreased their price target on Premium Brands from C$125.00 to C$116.00 in a research note on Friday, March 20th. Scotiabank cut their price objective on Premium Brands from C$120.00 to C$100.00 and set an "outperform" rating for the company in a research report on Friday, March 20th. Finally, Raymond James Financial decreased their target price on shares of Premium Brands from C$125.00 to C$115.00 and set an "outperform" rating on the stock in a research report on Friday, March 20th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus target price of C$118.62.

Premium Brands Stock Performance

PBH stock traded up C$1.73 on Friday, hitting C$90.31. The company's stock had a trading volume of 192,757 shares, compared to its average volume of 160,916. Premium Brands has a 1 year low of C$78.53 and a 1 year high of C$106.79. The company has a current ratio of 1.23, a quick ratio of 1.16 and a debt-to-equity ratio of 206.42. The stock has a market cap of C$4.70 billion, a price-to-earnings ratio of 100.34, a price-to-earnings-growth ratio of 1.10 and a beta of 0.80. The firm has a 50 day moving average of C$89.14 and a two-hundred day moving average of C$94.85.

Premium Brands (TSE:PBH - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported C$0.83 EPS for the quarter. Premium Brands had a net margin of 0.54% and a return on equity of 2.38%. The business had revenue of C$2.05 billion during the quarter. Equities analysts predict that Premium Brands will post 6.039823 EPS for the current fiscal year.

About Premium Brands

Premium Brands Holdings Corp is engaged in specialty food manufacturing, premium food distribution, and wholesale businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada, and Washington State. The company's business segments include Specialty Foods, Premium Food Distribution, and Corporate. The Specialty Foods segment consists of its specialty food manufacturing businesses, which contributes about two-thirds of the group revenue; the Premium Food Distribution segment consists of the company's distribution and wholesale businesses; the Corporate segment includes the company's head office activities along with its finance and information systems.

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