K-Bro Linen Inc. (TSE:KBL) Receives Average Recommendation of "Buy" from Brokerages

Key Points

• Analysts are broadly bullish: All six brokerages rate K-Bro Linen “Buy” or “Strong Buy,” with an average 12-month price target of C$53.17.
• Several firms recently raised their price targets to C$52–C$54, including TD, National Bank Financial, Stifel Nicolaus, and Raymond James.
• K-Bro Linen shares rose 1.6% to C$46.98, while the company reported quarterly revenue of C$150.36 million and earnings of C$0.78 per share.

Shares of K-Bro Linen Inc. (TSE:KBL - Get Free Report) have been given an average rating of "Buy" by the six ratings firms that are covering the company, Marketbeat Ratings reports. Five investment analysts have rated the stock with a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is C$53.17.

A number of research analysts have recently issued reports on KBL shares. TD increased their target price on K-Bro Linen from C$50.00 to C$52.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. TD Securities upgraded K-Bro Linen to a "strong-buy" rating in a research report on Friday, July 24th. National Bank Financial upped their price objective on shares of K-Bro Linen from C$51.00 to C$54.00 and gave the company an "outperform" rating in a report on Tuesday, July 28th. Stifel Nicolaus raised their target price on K-Bro Linen from C$52.00 to C$54.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, Raymond James Financial boosted their price target on shares of K-Bro Linen from C$50.00 to C$54.00 and gave the company an "outperform" rating in a research note on Thursday.

Insider Transactions at K-Bro Linen

In other news, insider Jeffrey Ronald Gannon sold 1,225 shares of the business's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of C$42.00, for a total value of C$51,450.00. Following the completion of the sale, the insider directly owned 15,407 shares of the company's stock, valued at approximately C$647,094. The trade was a 7.37% decrease in their position. Also, insider K-Bro Linen Inc. purchased 5,341 shares of K-Bro Linen stock in a transaction that occurred on Wednesday, May 27th. The stock was acquired at an average price of C$41.25 per share, with a total value of C$220,316.25. Following the transaction, the insider owned 338,581 shares in the company, valued at C$13,966,466.25. The trade was a 1.60% increase in their ownership of the stock. Over the last three months, insiders have bought 14,622 shares of company stock valued at $605,901. Corporate insiders own 3.25% of the company's stock.

K-Bro Linen Stock Up 1.6%

Shares of TSE KBL traded up C$0.72 during trading hours on Thursday, hitting C$46.98. 25,709 shares of the stock were exchanged, compared to its average volume of 18,513. The firm has a fifty day moving average price of C$44.46 and a 200-day moving average price of C$39.31. The company has a quick ratio of 0.87, a current ratio of 1.87 and a debt-to-equity ratio of 116.44. K-Bro Linen has a 12 month low of C$33.30 and a 12 month high of C$48.69. The company has a market cap of C$606.14 million, a PE ratio of 29.18, a PEG ratio of 3.50 and a beta of 0.89.

K-Bro Linen (TSE:KBL - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported C$0.78 earnings per share for the quarter. The company had revenue of C$150.36 million for the quarter. K-Bro Linen had a net margin of 3.51% and a return on equity of 7.12%. On average, sell-side analysts expect that K-Bro Linen will post 2.3389262 EPS for the current year.

About K-Bro Linen

K-Bro Linen Inc is a healthcare and hospitality laundry and linen processor in Canada. It operates in major cities across Canada, and has two distribution centers, providing management services and laundry processing of hospitality, healthcare, and specialty linens. The company provides vital products and services that help people heal, travel, live, and play. It helps hospitals and extended care centers care for the young, old, and vulnerable in environmentally responsible ways. It operates through two divisions, which are the Canadian division and the United Kingdom division.

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