Scotiabank Issues Pessimistic Forecast for Stella-Jones (TSE:SJ) Stock Price

Key Points

• Scotiabank cut its Stella-Jones price target to C$85 from C$93 while maintaining a “sector outperform” rating, implying 12.84% upside from the C$75.33 share price.
• Several analysts have also lowered their targets, but the stock retains a “Moderate Buy” consensus with five Buy ratings, three Holds, and an average target of C$90.
• Stella-Jones reported quarterly earnings of C$1.59 per share on C$1.04 billion in revenue; its shares traded near the lower end of their 52-week range and below both the 50-day and 200-day moving averages.

Stella-Jones (TSE:SJ - Get Free Report) had its price objective cut by Scotiabank from C$93.00 to C$85.00 in a note issued to investors on Wednesday,BayStreet.CA reports. The firm presently has a "sector outperform" rating on the stock. Scotiabank's target price suggests a potential upside of 12.84% from the company's current price.

Other equities analysts also recently issued research reports about the stock. TD dropped their price target on shares of Stella-Jones from C$106.00 to C$93.00 and set a "buy" rating for the company in a research note on Monday, May 11th. Desjardins lowered their target price on Stella-Jones from C$104.00 to C$99.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Canadian Imperial Bank of Commerce lowered their price objective on Stella-Jones from C$87.00 to C$82.00 in a research report on Thursday, July 9th. Raymond James Financial reduced their price objective on shares of Stella-Jones from C$90.00 to C$83.00 and set an "outperform" rating on the stock in a research note on Friday, August 7th. Finally, Royal Bank Of Canada decreased their price objective on shares of Stella-Jones from C$82.00 to C$79.00 and set a "sector perform" rating for the company in a research report on Friday, August 7th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Stella-Jones presently has a consensus rating of "Moderate Buy" and an average target price of C$90.00.

Stella-Jones Price Performance

SJ traded down C$2.04 on Wednesday, reaching C$75.33. The stock had a trading volume of 92,756 shares, compared to its average volume of 152,022. The company has a current ratio of 5.25, a quick ratio of 1.20 and a debt-to-equity ratio of 75.40. The company has a market capitalization of C$4.11 billion, a price-to-earnings ratio of 15.96, a price-to-earnings-growth ratio of 2.40 and a beta of -0.07. Stella-Jones has a fifty-two week low of C$69.94 and a fifty-two week high of C$101.31. The firm has a 50-day moving average of C$79.47 and a 200-day moving average of C$85.15.

Stella-Jones (TSE:SJ - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported C$1.59 earnings per share for the quarter. The company had revenue of C$1.04 billion for the quarter. Stella-Jones had a return on equity of 12.35% and a net margin of 7.36%. As a group, sell-side analysts anticipate that Stella-Jones will post 6.4457565 EPS for the current year.

Stella-Jones Company Profile

Stella-Jones Inc produces and sells lumber and wood products. The company operates in two segments: Pressure-treated wood, which includes utility poles, railway ties, residential lumber, and industrial products; and Logs & Lumber segment comprises of the sales of logs harvested in the course of the company's procurement process that is determined to be unsuitable for use as utility poles, it also includes the sale of excess lumber to local home-building markets. The vast majority of its revenue comes from the Pressure-treated wood segment.

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