Loblaw Companies (TSE:L) Raised to Outperform at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded Loblaw Companies from “market perform” to “outperform” and lifted its target price to C$70 from C$68, implying about 6.5% upside from the current price.
• Other analysts were mixed: Scotiabank and Scotia cut their ratings or targets, while CIBC lowered its price objective; overall, the stock still carries an average “Moderate Buy” rating with a C$69.50 consensus target.
• Loblaw shares recently traded at C$65.70, near their 12-month high of C$69.59, and the company’s latest quarterly results showed C$0.52 EPS on C$14.48 billion in revenue.

Loblaw Companies (TSE:L - Get Free Report) was upgraded by research analysts at BMO Capital Markets from a "market perform" rating to an "outperform" rating in a report issued on Monday,BayStreet.CA reports. The brokerage presently has a C$70.00 target price on the stock, up from their prior target price of C$68.00. BMO Capital Markets' price target would indicate a potential upside of 6.54% from the company's current price.

Several other analysts also recently commented on the stock. Scotiabank downgraded shares of Loblaw Companies from an "outperform" rating to a "hold" rating and set a C$70.00 price objective on the stock. in a report on Thursday, April 9th. Canadian Imperial Bank of Commerce decreased their target price on shares of Loblaw Companies from C$75.00 to C$69.00 in a research report on Thursday, May 7th. Finally, Scotia lowered their price target on shares of Loblaw Companies from C$70.00 to C$64.00 and set a "sector perform" rating on the stock in a report on Thursday, May 7th. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of C$69.50.

Loblaw Companies Stock Performance

Shares of TSE:L traded up C$0.21 during trading on Monday, hitting C$65.70. The stock had a trading volume of 342,549 shares, compared to its average volume of 1,356,234. Loblaw Companies has a 12-month low of C$52.92 and a 12-month high of C$69.59. The stock has a market capitalization of C$76.47 billion, a price-to-earnings ratio of 28.57, a price-to-earnings-growth ratio of 3.23 and a beta of 0.13. The company has a quick ratio of 0.68, a current ratio of 1.09 and a debt-to-equity ratio of 153.41. The stock has a 50-day simple moving average of C$63.34 and a two-hundred day simple moving average of C$63.36.

Loblaw Companies (TSE:L - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported C$0.52 EPS for the quarter. Loblaw Companies had a return on equity of 24.88% and a net margin of 4.29%.The firm had revenue of C$14.48 billion for the quarter. On average, equities research analysts expect that Loblaw Companies will post 9.1225541 earnings per share for the current fiscal year.

Insider Buying and Selling at Loblaw Companies

In related news, Director Nicholas Henn sold 10,000 shares of the firm's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of C$67.00, for a total transaction of C$670,000.00. Also, insider Melanie Singh sold 4,820 shares of the company's stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of C$66.72, for a total transaction of C$321,590.40. Insiders own 53.77% of the company's stock.

Loblaw Companies Company Profile

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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