Desjardins Issues Pessimistic Forecast for Stella-Jones (TSE:SJ) Stock Price

Key Points

• Desjardins cut its price target on Stella-Jones from C$107 to C$104 but kept a "buy" rating, implying about a 39.22% upside from the prior close.
• Several other brokers also trimmed targets this week; the consensus is a "Moderate Buy" with an average price target of C$97 and five Buy vs three Hold ratings.
• Shares traded down to C$74.70 (near the 1‑year low of C$70.98), well below analyst targets, while the company recently reported quarterly EPS of C$1.12, revenue of C$791M and a P/E of 12.27.

Stella-Jones (TSE:SJ - Get Free Report) had its price objective reduced by equities researchers at Desjardins from C$107.00 to C$104.00 in a note issued to investors on Thursday,BayStreet.CA reports. The brokerage presently has a "buy" rating on the stock. Desjardins' target price indicates a potential upside of 39.22% from the company's previous close.

A number of other equities analysts have also recently commented on the stock. Canadian Imperial Bank of Commerce dropped their price target on shares of Stella-Jones from C$96.00 to C$87.00 in a research note on Thursday. Raymond James Financial reduced their price target on Stella-Jones from C$100.00 to C$95.00 and set an "outperform" rating on the stock in a report on Thursday. Royal Bank Of Canada dropped their price objective on Stella-Jones from C$93.00 to C$85.00 and set a "sector perform" rating for the company in a report on Thursday. TD Securities upped their price objective on Stella-Jones from C$97.00 to C$107.00 and gave the company a "buy" rating in a research report on Monday, March 2nd. Finally, National Bank Financial downgraded Stella-Jones from an "outperform" rating to a "hold" rating and decreased their target price for the stock from C$107.00 to C$95.00 in a research report on Wednesday, April 8th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Stella-Jones has an average rating of "Moderate Buy" and an average price target of C$97.00.

Stella-Jones Price Performance

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

Stella-Jones (TSE:SJ - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported C$1.12 earnings per share (EPS) for the quarter. Stella-Jones had a return on equity of 16.67% and a net margin of 9.65%.The business had revenue of C$791.00 million during the quarter. On average, equities analysts anticipate that Stella-Jones will post 6.4457565 EPS for the current fiscal year.

About Stella-Jones

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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