K-Bro Linen (TSE:KBL) Given New C$55.00 Price Target at ATB Cormark Capital Markets

Key Points

• ATB Cormark raised K-Bro Linen’s price target to C$55 from C$50 and maintained an “outperform” rating, implying 17.52% upside from the reported trading price.
• Analyst sentiment remains positive, with a consensus “Buy” rating and average target of C$53.17; recent upgrades and target increases came from TD Securities and National Bank Financial.
• K-Bro shares rose 1.2% to C$46.80, while the company reported quarterly EPS of C$0.78 on C$150.36 million in revenue. Insiders have been net buyers over the past quarter, acquiring 14,622 shares.

K-Bro Linen (TSE:KBL - Get Free Report) had its price objective increased by investment analysts at ATB Cormark Capital Markets from C$50.00 to C$55.00 in a report issued on Thursday,BayStreet.CA reports. The firm presently has an "outperform" rating on the stock. ATB Cormark Capital Markets' price target indicates a potential upside of 17.52% from the stock's current price.

Several other analysts have also recently commented on the stock. TD Securities upgraded shares of K-Bro Linen to a "strong-buy" rating in a research report on Friday, July 24th. National Bank Financial raised their price target on K-Bro Linen from C$51.00 to C$54.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 28th. Finally, TD lifted their price objective on K-Bro Linen from C$50.00 to C$52.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating and five have given a Buy rating to the company's stock. Based on data from MarketBeat, K-Bro Linen presently has a consensus rating of "Buy" and a consensus target price of C$53.17.

K-Bro Linen Trading Up 1.2%

K-Bro Linen stock traded up C$0.54 during trading hours on Thursday, reaching C$46.80. 16,263 shares of the company's stock traded hands, compared to its average volume of 18,420. The firm has a market capitalization of C$603.81 million, a price-to-earnings ratio of 29.07, a PEG ratio of 3.50 and a beta of 0.89. The company has a debt-to-equity ratio of 116.44, a quick ratio of 0.87 and a current ratio of 1.87. K-Bro Linen has a fifty-two week low of C$33.30 and a fifty-two week high of C$48.69. The firm's 50 day moving average is C$44.46 and its 200-day moving average is C$39.31.

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

Insider Activity

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

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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