Loblaw Companies (TSE:L) Cut to Sector Perform at Scotiabank

Key Points

• Scotiabank downgraded Loblaw Companies from "outperform" to "sector perform" and set a C$70 price target, implying roughly a 9.6% upside from the previous close.
• Most analysts remain positive: five rate the stock a Buy and two a Hold, with a MarketBeat consensus of "Moderate Buy" and a consensus price target of C$92.63.
• Shares fell about 1.9% to C$63.90; Loblaw reported C$0.67 EPS for the quarter, has a market cap of C$74.89B and a P/E of 28.78, and carries a high debt-to-equity ratio of 227.92.

Loblaw Companies (TSE:L - Get Free Report) was downgraded by investment analysts at Scotiabank from an "outperform" rating to a "sector perform" rating in a report issued on Thursday,BayStreet.CA reports. They presently have a C$70.00 price objective on the stock. Scotiabank's target price suggests a potential upside of 9.55% from the company's previous close.

Several other equities analysts have also recently weighed in on L. BMO Capital Markets raised their price target on shares of Loblaw Companies from C$63.00 to C$68.00 and gave the company a "market perform" rating in a research report on Monday, February 23rd. Desjardins raised 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 report on Thursday, February 26th. TD Securities raised their price target on shares of Loblaw Companies from C$65.00 to C$75.00 and gave the company a "buy" rating in a research report on Monday, February 23rd. Royal Bank Of Canada raised their price target on shares of Loblaw Companies from C$68.00 to C$72.00 and gave the company an "outperform" rating in a research report on Friday, January 23rd. Finally, National Bank Financial raised their price target on shares of Loblaw Companies from C$62.00 to C$66.00 and gave the company an "outperform" rating in a research report on Wednesday, January 28th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Loblaw Companies presently has a consensus rating of "Moderate Buy" and a consensus price target of C$92.63.

Loblaw Companies Stock Down 1.9%

Shares of L stock traded down C$1.27 on Thursday, reaching C$63.90. 589,722 shares of the company were exchanged, compared to its average volume of 1,403,191. The company has a market cap of C$74.89 billion, a price-to-earnings ratio of 28.78, a PEG ratio of 3.23 and a beta of 0.30. The company has a 50-day moving average of C$64.53 and a 200-day moving average of C$61.24. The company has a debt-to-equity ratio of 227.92, a current ratio of 1.08 and a quick ratio of 0.68. Loblaw Companies has a one year low of C$48.01 and a one year high of C$69.59.

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

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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