Analyst Etienne Ricard of BMO Capital maintained a Hold rating on Empire Co Cl A NV, with a price target of C$55.00.
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Etienne Ricard’s rating is based on several key considerations. Empire Co Cl A NV has shown promising improvements in gross margins, driven by better inventory management and reduced shrinkage. However, the company faces challenges with elevated SG&A expenses, which could hinder its ability to consistently achieve the desired 8-11% EPS growth.
While there are positive signs in consumer growth across both full-service and discount stores, the gap between them has narrowed significantly. The company’s efforts in promoting Canadian products have also been noteworthy, although growth has slightly moderated. Despite these positives, Empire’s trading discount compared to peers like Loblaw and MRU, along with uncertainties in consistently meeting new financial targets, supports the Hold rating.
According to TipRanks, Ricard is a 5-star analyst with an average return of 26.3% and a 74.56% success rate. Ricard covers the Financial sector, focusing on stocks such as Sprott, goeasy, and Equitable Group.
In another report released yesterday, TR | OpenAI – 4o also downgraded the stock to a Hold with a C$56.00 price target.