K-Bro Linen (TSE:KBL) Share Price Crosses Above 200-Day Moving Average - Here's Why

Key Points

• K-Bro Linen shares rose above their 200-day moving average, reaching C$43.30 before closing at C$42.92, compared with the long-term average of C$41.17.
• Analyst sentiment is strongly positive: the stock has a consensus “Buy” rating, including one Strong Buy, with an average price target of C$53.17.
• The company reported quarterly EPS of C$0.78 on revenue of C$150.36 million, while profitability remained modest with a 3.67% net margin and 7.89% return on equity.

K-Bro Linen Inc. (TSE:KBL - Get Free Report)'s stock price passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$41.17 and traded as high as C$43.30. K-Bro Linen shares last traded at C$42.92, with a volume of 7,022 shares.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on the company. TD Securities raised K-Bro Linen to a "strong-buy" rating in a research report on Friday, July 24th. Stifel Nicolaus upped their price target on K-Bro Linen from C$52.00 to C$54.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. ATB Cormark Capital Markets increased their price target on K-Bro Linen from C$50.00 to C$55.00 and gave the stock an "outperform" rating in a research note on Thursday, August 6th. Raymond James Financial lifted their price objective on K-Bro Linen from C$50.00 to C$54.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. Finally, National Bank Financial boosted their price objective on K-Bro Linen from C$51.00 to C$54.00 and gave the company an "outperform" rating in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating and five have issued a Buy rating to the stock. Based on data from MarketBeat.com, K-Bro Linen presently has a consensus rating of "Buy" and an average target price of C$53.17.

K-Bro Linen Price Performance

The company has a debt-to-equity ratio of 113.71, a quick ratio of 0.87 and a current ratio of 1.85. The business has a 50 day simple moving average of C$45.96 and a two-hundred day simple moving average of C$41.17. The firm has a market capitalization of C$552.21 million, a P/E ratio of 25.10, a price-to-earnings-growth ratio of 3.50 and a beta of 0.91.

K-Bro Linen (TSE:KBL - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported C$0.78 earnings per share (EPS) for the quarter. The business had revenue of C$150.36 million during the quarter. K-Bro Linen had a net margin of 3.67% and a return on equity of 7.89%. On average, sell-side analysts expect that K-Bro Linen Inc. will post 2.3389262 EPS for the current fiscal year.

K-Bro Linen Company Profile

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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