In a report released yesterday, Tamy Chen from BMO Capital maintained a Hold rating on George Weston, with a price target of C$271.00.
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Tamy Chen’s rating is based on several factors influencing George Weston’s market position and valuation. The Hold rating reflects a neutral stance primarily due to the current market conditions surrounding Loblaw, a significant component of George Weston’s portfolio. The recent revisions to George Weston’s forecasts are directly linked to updated estimates for Loblaw, indicating that changes in Loblaw’s performance have a direct impact on George Weston’s outlook.
Furthermore, the market is currently applying a holding company discount to George Weston’s valuation, which has narrowed over recent months. This narrowing discount suggests an improved market sentiment towards George Weston’s exposure to Choice REIT, possibly due to anticipated interest rate cuts. However, the remaining discount and the neutral outlook on Loblaw shares contribute to the decision to maintain a Hold rating, as the potential for significant upside appears limited under current conditions.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Canadian Tire, Dollarama, and Alimentation Couche-Tard Inc. According to TipRanks, Chen has an average return of 2.8% and a 50.00% success rate on recommended stocks.