Rogers Sugar, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Stephen Macleod from BMO Capital reiterated a Hold rating on the stock and has a C$6.50 price target.
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Stephen Macleod has given his Hold rating due to a combination of factors that reflect both positive and challenging aspects of Rogers Sugar’s current market position. The company’s Q3/25 results exceeded expectations, driven by strong sugar margins despite weaker performance in the maple segment. The outlook for 2025 remains consistent, with anticipated modest growth in sugar volumes, although this is tempered by market volatility stemming from U.S. tariffs and a slight decline in industrial demand.
Despite these challenges, Macleod forecasts year-over-year EBITDA growth in both sugar and maple segments, supported by robust underlying demand and historically strong margins. While tariffs pose some risks, they are considered manageable, especially with exemptions under CUSMA. The stock’s valuation is seen as fair, reflecting the solid demand for sweeteners, although the attractive dividend yield may appeal to income-focused investors.
Based on the recent corporate insider activity of 41 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 RSI in relation to earlier this year.