Canadian Imperial Bank of Commerce Has Lowered Expectations for Stella-Jones (TSE:SJ) Stock Price

Key Points

• Canadian Imperial Bank of Commerce cut its price target for Stella-Jones from C$96.00 to C$87.00, while the consensus analyst target remains around C$97.00 with a "Moderate Buy" consensus (five Buys, three Holds).
• Shares traded down to C$74.70 (down ~3%), well below the 50‑day (C$90.25) and 200‑day (C$88.28) moving averages and close to the 1‑year low of C$70.98, indicating the stock is trading materially under analyst targets.
• In the latest quarter Stella‑Jones reported EPS of C$1.12 on revenue of C$791 million, with a net margin of 9.65% and a market cap of about C$4.08 billion (P/E ~12.3).

Stella-Jones (TSE:SJ - Get Free Report) had its price objective dropped by stock analysts at Canadian Imperial Bank of Commerce from C$96.00 to C$87.00 in a research report issued on Thursday,BayStreet.CA reports. Canadian Imperial Bank of Commerce's target price would indicate a potential upside of 16.47% from the company's previous close.

A number of other analysts have also recently weighed in on SJ. TD Securities raised their price target on Stella-Jones from C$97.00 to C$107.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. Scotiabank dropped their price target on shares of Stella-Jones from C$99.00 to C$97.00 and set a "sector outperform" rating on the stock in a research note on Tuesday, April 28th. National Bank Financial cut shares of Stella-Jones from an "outperform" rating to a "hold" rating and lowered their target price for the company from C$107.00 to C$95.00 in a report on Wednesday, April 8th. TD lowered their target price on shares of Stella-Jones from C$107.00 to C$106.00 and set a "buy" rating on the stock in a research report on Tuesday. Finally, Royal Bank Of Canada dropped their price objective on shares of Stella-Jones from C$95.00 to C$93.00 and set a "sector perform" rating on the stock in a research note on Monday, April 13th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of C$97.00.

Stella-Jones Stock Down 3.0%

Shares of SJ traded down C$2.31 during midday trading on Thursday, hitting C$74.70. The company had a trading volume of 243,548 shares, compared to its average volume of 134,032. The company's 50-day simple moving average is C$90.25 and its 200-day simple moving average is C$88.28. The company has a debt-to-equity ratio of 92.30, a quick ratio of 1.20 and a current ratio of 7.40. Stella-Jones has a 1 year low of C$70.98 and a 1 year high of C$101.31. The firm has a market capitalization of C$4.08 billion, a P/E ratio of 12.27, a P/E/G ratio of 2.40 and a beta of -0.15.

Stella-Jones (TSE:SJ - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported C$1.12 earnings per share (EPS) for the quarter. Stella-Jones had a net margin of 9.65% and a return on equity of 16.67%. The company had revenue of C$791.00 million during the quarter. As a group, sell-side analysts expect that Stella-Jones will post 6.4457565 EPS for the current year.

Stella-Jones Company Profile

Stella-Jones Inc produces and sells lumber and wood products. The company operates in two segments: Pressure-treated wood, which includes utility poles, railway ties, residential lumber, and industrial products; and Logs & Lumber segment comprises of the sales of logs harvested in the course of the company's procurement process that is determined to be unsuitable for use as utility poles, it also includes the sale of excess lumber to local home-building markets. The vast majority of its revenue comes from the Pressure-treated wood segment.

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