Tamy Chen, an analyst from BMO Capital, maintained the Hold rating on Saputo Inc. (SAP – Research Report). The associated price target is C$27.00.
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Tamy Chen has given her Hold rating due to a combination of factors impacting Saputo Inc.’s performance. Despite a recent dip in stock price following a weaker-than-expected FQ4/25, there are signs of improvement, particularly in Argentina and the U.S., where commodity trends are becoming more favorable. The company’s management has indicated a positive outlook for margin recovery in Europe, although the pace may be slower than initially anticipated.
However, lingering uncertainties remain, particularly concerning the quarterly cadence of Europe’s margin recovery and the company’s ability to increase branded sales, which are crucial for reducing exposure to volatile dairy commodity prices. While the near-term outlook appears more positive, the analyst remains cautious and prefers to wait for clearer evidence of sustained improvement in these areas before considering a more favorable rating.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Dollarama, Alimentation Couche-Tard Inc, and Canadian Tire. According to TipRanks, Chen has an average return of 1.5% and a 49.51% success rate on recommended stocks.