BMO Capital analyst Tamy Chen has maintained their neutral stance on EMP.A stock, giving a Hold rating yesterday.
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Tamy Chen has given her Hold rating due to a combination of factors influencing Empire Co Cl A NV’s current market position. The company has shown a consistent improvement in same-store sales (SSS) over the past quarters, with an expected increase in SSS for the fourth quarter of 2025. This improvement is partly attributed to accelerated food inflation and a weak comparison from the previous year. However, despite these positive trends, there are concerns about the sustainability of this growth, especially as the ‘Buy Canadian’ trend may be waning.
Additionally, Empire Co Cl A NV’s stock is trading at a significant discount compared to its peers like Loblaw and Metro, despite having similar absolute returns. This suggests that much of the catch-up trade from rebounding SSS might have already been realized. Furthermore, the anticipated elevated growth in selling, general, and administrative expenses (SG&A) due to increased stock-based compensation could impact profitability. Given these mixed signals, Tamy Chen has opted to maintain a Hold rating, awaiting more consistent earnings growth before reconsidering her stance.
In another report released yesterday, National Bank also maintained a Hold rating on the stock with a C$53.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EMP.A in relation to earlier this year.