TD Securities Upgrades K-Bro Linen (TSE:KBL) to "Strong-Buy"

Key Points

• TD Securities upgraded K-Bro Linen to a “strong-buy” rating and raised its price target to C$52 from C$50, signaling increased optimism on the stock.
• Other analysts remain positive as well: National Bank Financial has an “outperform” rating with a C$51 target, and MarketBeat shows an overall average rating of “Buy” with a C$51 average target price.
• The stock was trading near its 12-month high at C$47.49, up 0.8% on the day, after the company reported quarterly EPS of C$0.36 on revenue of C$139.11 million.

K-Bro Linen (TSE:KBL - Get Free Report) was upgraded by equities research analysts at TD Securities to a "strong-buy" rating in a report issued on Friday,Zacks.com reports.

KBL has been the topic of several other reports. National Bank Financial set a C$51.00 price target on K-Bro Linen and gave the stock an "outperform" rating in a research report on Friday, April 10th. TD boosted their price objective on K-Bro Linen from C$50.00 to C$52.00 and gave the company a "buy" rating in a report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating and two have assigned a Buy rating to the company. According to MarketBeat.com, K-Bro Linen currently has an average rating of "Buy" and an average target price of C$51.00.

K-Bro Linen Stock Up 0.8%

KBL stock opened at C$47.49 on Friday. The company has a market capitalization of C$612.72 million, a P/E ratio of 29.50, a price-to-earnings-growth ratio of 3.50 and a beta of 0.89. K-Bro Linen has a 12 month low of C$33.30 and a 12 month high of C$47.85. The firm's fifty day simple moving average is C$43.47 and its 200-day simple moving average is C$38.57. The company has a debt-to-equity ratio of 116.44, a current ratio of 1.87 and a quick ratio of 0.87.

K-Bro Linen (TSE:KBL - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported C$0.36 earnings per share (EPS) for the quarter. The firm had revenue of C$139.11 million during the quarter. K-Bro Linen had a net margin of 3.51% and a return on equity of 7.12%. As a group, equities research analysts forecast that K-Bro Linen will post 2.3389262 earnings per share for the current year.

Insider Activity at K-Bro Linen

In other news, insider Jeffrey Ronald Gannon sold 1,225 shares of K-Bro Linen stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of C$42.00, for a total transaction of C$51,450.00. Following the completion of the transaction, the insider directly owned 15,407 shares of the company's stock, valued at C$647,094. The trade was a 7.37% decrease in their position. Also, insider K-Bro Linen Inc. bought 5,341 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The stock was purchased at an average price of C$41.25 per share, with a total value of C$220,316.25. Following the completion of the purchase, the insider owned 338,581 shares in the company, valued at approximately C$13,966,466.25. This trade represents a 1.60% increase in their ownership of the stock. Over the last ninety days, insiders have bought 14,622 shares of company stock valued at $605,901. Insiders own 3.25% of the company's stock.

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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