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 impacting Empire Co Cl A NV’s performance. One of the primary considerations is the anticipated slowdown in same-store sales growth, coupled with increasing SG&A expenses. Despite Empire’s recent outperformance compared to its peers, Loblaw and Metro, the company’s ability to sustain an 8-11% earnings growth is crucial for any potential stock price appreciation.
Additionally, Empire’s trading valuation remains at a discount to its competitors, and the company faces challenges in consistently achieving its financial targets. The ongoing Buy Canadian trends could provide some support, but uncertainties around cost pressures and the impact of previous boycott actions at a competitor create a cautious outlook. Consequently, Tamy Chen maintains a Hold rating, reflecting the need for more consistent performance before considering a more favorable recommendation.
According to TipRanks, Chen is a 3-star analyst with an average return of 2.9% and a 49.55% success rate. Chen covers the Consumer Defensive sector, focusing on stocks such as Empire Co Cl A NV, Saputo Inc., and Loblaw Companies.
In another report released yesterday, TD Cowen also reiterated a Hold rating on the stock with a C$58.00 price target.