Loblaw Companies Limited (TSE:L) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• "Moderate Buy" consensus from seven analysts (six buys, one hold) with an average 12‑month price target of C$92.63, and several firms (TD, Scotiabank, Desjardins, National Bank) recently raised their targets.
• Loblaw reported Q EPS of C$0.67 on C$15.70B revenue, with a 24.03% ROE and 4.17% net margin; the stock trades around C$64 (market cap ~C$75B, PE 28.85) and pays a quarterly dividend of C$0.1411 (annualized C$0.56, yield 0.9%, DPR 24.84%).

Shares of Loblaw Companies Limited (TSE:L - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the seven research firms that are presently covering the stock, MarketBeat reports. One research analyst has rated the stock with a hold recommendation and six have assigned a buy recommendation to the company. The average 12-month price objective among analysts that have covered the stock in the last year is C$92.63.

A number of analysts have commented on the stock. Desjardins increased their price target on shares of Loblaw Companies from C$67.00 to C$70.00 and gave the company a "buy" rating in a research note on Thursday, February 26th. BMO Capital Markets boosted their price objective on shares of Loblaw Companies from C$63.00 to C$68.00 and gave the stock a "market perform" rating in a research note on Monday, February 23rd. Scotiabank upped their target price on shares of Loblaw Companies from C$68.00 to C$70.00 and gave the company an "outperform" rating in a report on Thursday, February 26th. National Bank Financial raised their target price on shares of Loblaw Companies from C$62.00 to C$66.00 and gave the company an "outperform" rating in a research note on Wednesday, January 28th. Finally, TD Securities lifted their price target on Loblaw Companies from C$65.00 to C$75.00 and gave the stock a "buy" rating in a report on Monday, February 23rd.

Loblaw Companies Stock Performance

Shares of TSE L opened at C$64.04 on Thursday. The company has a debt-to-equity ratio of 227.92, a quick ratio of 0.68 and a current ratio of 1.08. The stock has a 50 day moving average price of C$64.28 and a 200 day moving average price of C$60.88. The stock has a market capitalization of C$75.05 billion, a PE ratio of 28.85, a price-to-earnings-growth ratio of 3.23 and a beta of 0.29. Loblaw Companies has a 52 week low of C$48.01 and a 52 week high of C$69.59.

Loblaw Companies (TSE:L - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported C$0.67 earnings per share (EPS) for the quarter. Loblaw Companies had a return on equity of 24.03% and a net margin of 4.17%.The company had revenue of C$15.70 billion for the quarter. Analysts predict that Loblaw Companies will post 9.1225541 earnings per share for the current fiscal year.

Loblaw Companies Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Stockholders of record on Wednesday, April 1st were given a $0.1411 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Friday, March 13th. Loblaw Companies's dividend payout ratio (DPR) is presently 24.84%.

About Loblaw Companies

Loblaw is one of Canada's largest grocery, pharmacy, and general merchandise retailers, operating the most expansive store footprint in Ontario and maintaining sizable presences in provinces like Quebec and British Columbia. Key grocery banners include Loblaw, No Frills, and Maxi, while its pharmaceutical operations are the product of its 2014 acquisition of Shoppers Drug Mart. The firm carries a robust private-label assortment, with top sellers like President's Choice and No Name. In addition to its retail operations, Loblaw oversees a financial-services business, which provides credit card services and guaranteed investment certificates, and also operates its PC Optimum loyalty program.

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