TD Forecasts Strong Price Appreciation for K-Bro Linen (TSE:KBL) Stock

Key Points

• TD raised its target on K-Bro Linen to C$52 (from C$50) and kept a "buy" rating, implying a potential upside of about 28.68%; National Bank set a C$51 target and the consensus average target is C$50.20 with a "Moderate Buy" rating.
• K-Bro traded at C$40.41 (down 2.6%) with a market cap of ~C$521.4M, a P/E of 26.76, and a 52-week range of C$33.30–C$42.69, leaving the stock trading well below analyst targets.
• In the latest quarter K-Bro reported EPS of C$0.36 on C$139.11M of revenue, with a net margin of 3.55% and ROE of 7.09%, and analysts project about C$2.34 EPS for the current fiscal year.

K-Bro Linen (TSE:KBL - Get Free Report) had its target price upped by research analysts at TD from C$50.00 to C$52.00 in a research note issued on Thursday,BayStreet.CA reports. The firm presently has a "buy" rating on the stock. TD's price objective suggests a potential upside of 28.68% from the stock's current price.

Separately, National Bank Financial set a C$51.00 price objective on shares of K-Bro Linen and gave the company an "outperform" rating in a research report on Friday, April 10th. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of C$50.20.

K-Bro Linen Trading Down 2.6%

K-Bro Linen stock traded down C$1.09 during midday trading on Thursday, hitting C$40.41. 13,478 shares of the stock were exchanged, compared to its average volume of 22,241. The stock has a market capitalization of C$521.37 million, a PE ratio of 26.76, a P/E/G ratio of 3.50 and a beta of 0.57. The company has a fifty day simple moving average of C$36.29 and a two-hundred day simple moving average of C$35.76. The company has a quick ratio of 0.87, a current ratio of 1.88 and a debt-to-equity ratio of 116.99. K-Bro Linen has a 52 week low of C$33.30 and a 52 week high of C$42.69.

K-Bro Linen (TSE:KBL - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported C$0.36 EPS for the quarter. The firm had revenue of C$139.11 million during the quarter. K-Bro Linen had a net margin of 3.55% and a return on equity of 7.09%. Equities research analysts anticipate that K-Bro Linen will post 2.3389262 EPS for the current fiscal year.

About K-Bro Linen

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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