High Liner Foods: Balancing Growth Opportunities and Economic Challenges – Hold Rating Maintained

BMO Capital analyst Nevan Yochim maintained a Hold rating on High Liner Foods (HLF – Research Report) on February 27 and set a price target of C$19.00.

Nevan Yochim’s rating is based on a combination of factors that reflect both positive and challenging aspects of High Liner Foods’ current situation. The company reported a stronger-than-expected performance in Q4/24, with an increase in EBITDA and a positive shift in retail volume growth. Despite these gains, the overall revenue saw a slight decline, and there was an increase in SG&A expenses, indicating some underlying challenges.
High Liner Foods has introduced a promising outlook for 2025, expecting growth in both volume and EBITDA. However, the macroeconomic environment remains difficult, particularly affecting the foodservice sector. While retail volumes have shown improvement, the overall market softness, especially in casual dining, continues to pose a challenge. Given these mixed signals, Yochim maintains a Hold rating, suggesting that while there are growth opportunities, the current economic conditions warrant caution.